ISLAMABAD: In the fiscal year 2024–2025, the federal government has set an ambitious plan to collect Rs1.28 trillion from the petroleum levy, a 47.4% increase over the previous year’s target.
The government exceeded its initial target of Rs869 billion by collecting Rs960 billion from the fuel levy in the previous fiscal year. The following fiscal year’s budget anticipates collecting an extra Rs321 billion.
Additionally, it is anticipated that the crude oil levy will bring in Rs28 billion, the same amount as the previous year despite a target of Rs35 billion. Despite not being included in the initial budget for 2023–2024, the recently introduced gas levy is expected to produce Rs400 million; nevertheless, Rs220 million was nevertheless collected under this area.
It is projected that in 2024–2025, various revenues from oil and gas firms will produce Rs1.52 trillion. Compared to the initial budget estimate of Rs1.14tr, the reduced aim resulted in a collection of Rs1.19tr for the current fiscal year.
The objective for collecting the Gas Infrastructure Development Cess (GIDC) for 2024–2025 is still Rs2.5 billion. The actual amount collected for 2023–24 was barely Rs2.5 billion, compared to the initial objective of Rs40 billion.
The government estimates that the Natural Gas Development Surcharge (GDS), which is the difference between the sale price of gas allotted to the provinces and its prescribed price, will bring in Rs25.61 billion in revenue during the upcoming fiscal year. Actual receipts for 2023–24 were Rs27.16 billion, compared to an initial forecast of Rs40 billion.
Additionally, the government intends to raise revenue from the petroleum levy on liquefied petroleum gas (LPG) from Rs3.51bn to Rs3.53bn in 2024–25.
In line with the updated projection for the current year, the budget for 2024–2025 contains Rs25 billion to be set aside as a discount on local crude oil prices, an increase from the initial allocation of Rs20 billion.
The budget also suggests raising the natural gas royalty for provinces and decreasing the royalty on crude oil. The budgeted amount for the royalty on natural gas year 2024–2025 is Rs103.751 billion, whilst the royalty on crude oil is Rs58.65 billion.
