Sources informed NetMag that senior members of the economic team have instructed the Federal Board of Revenue (FBR) to draft proposals for a sales tax on petroleum products.
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Should the government approve the imposition of this sales tax, it may hinder any reduction in petroleum prices slated for August 1, 2024. The Oil & Gas Regulatory Authority (OGRA) has recommended a reduction in diesel prices by Rs. 10 per liter and petrol prices by Rs. 5.50 per liter, reflecting current trends in the international market.
It is important to note that the government has already implemented a petroleum development levy (PDL) on petroleum products. In the latest budget, parliament approved a gradual increase in the PDL on petroleum products from Rs. 60 per liter to Rs. 70 per liter.
