Government not to give relaxation on petroleum levy

Miftah Ismail

In the budget 2018-19, the government proposed many recommendations for the automobile sector; many were hailed by the consumers and other stakeholders while some were harshly criticised such as the increase in petroleum levy. On Wednesday Senate Standing Committee on Finance met Federal Minister for Finance, Revenue and Economic Affairs Miftah Ismail and discussed the proposed increase in petroleum levy.

The committee recommended to finance minister not to increase the petroleum levy rates much; however, the minister rejected the proposal. It is to be noted here that government has proposed to increase petroleum levy rates up to 200 percent.

Government is expecting a revenue of PKR 480 billion from the increase in levy rates.   

Read Also: Government bumps prices of petrol and diesel

Aside from finance minister’s rejection to give relaxation on petroleum products, the Supreme Court of Pakistan has ordered the government and all the concerned departments to provide a detailed report on taxes imposed on petroleum products.

The government for the last 8-9 months has consistently bumped the prices of POL products in the country while facing harsh criticism from public, transporters and other stakeholders.

Moving onward, the other proposals which the government has put forth regarding automobile sector are as follow:

  • Exemption of 16% customs duty on charging stations for electric vehicles
  • Reduction of customs duty from 50% to 25% and exemption of 15% RD on electric vehicles
  • Customs duty on kits of electric vehicle reduced from 50% to 10%
  • Non-filers shall not be permitted to purchase new motor vehicles manufactured in Pakistan or new imported vehicle
  • Concessionary import of vintage or classic cars and jeeps at fix duty/taxes of US$ 5,000
  • Reduction of customs duty on import of firefighting vehicles from 30% to 10%

Drop your thoughts in the comments section below.


My name is M. Ali Laghari and I love to read and write about Cars.

Notable Replies

  1. Yeh hakumat Bari kameeni ha . Supreme Court aik tax nullify karae gi yeh doosra barha deye gae

  2. I think, policy makers sitting in their offices have little-to-no idea regarding ground realities, miseries / sufferings of the people, most importantly, drastic effects on the lives of common people, when such policies are implemented.

    If petroleum levy increases, one can very well imagine that price of every single item will increase.

    Hamaray mulk jaisa shayed hi koi aur mulk ho, jiski exports min. hoon, debts / loans mein dhunsa ho aur uski economy awaam ka khoon choos choos k taxes p chall rai ho.

    I mean... sales tax, income tax, wealth tax, advance tax / advance income tax, advance withholding tax, excise duty, custom duty...
    Tax p tax, tax p duty, duty p duty... What rubbish and non-sense is this?

    Agar aik banday ki income Rs. 100,000, I think 25-35% to sirf taxes hi ki madd mein chali jati hai.
    Aur badlay mein unhein milta kya hai?
    Estehsa'al, Zulm, NaInsaafian...?

    Govt. harr uss cheez p taxes lagati hai and max. lagati hai jo awaam k general use ki chezain hain and jinn k bgair, shayed aajkal kisi ka b guzara nai hai...Automobiles, bikes, Fuel and Scratch cards to name a few. Aap inn p zara taxes calculate karein... Banda haeraan reh jata hai!

    Agar aapko aik car 10 lac ki parr rai hai, then I think, uss mein sey 5 Lac sirf taxes ki madd mein ho ga.

    Aap Japan sey car mangwayein, 1000 cc 8 Lac rupay ki gari, aapko yahan 16-17 Lac mein parti hai.
    Kya ub banda horse cart p aa jye?

    Agar Government ney revenue generate karna hai then exports barhaye, local industries ko develop karay, manpower export karay, governance improve karay, black money khatam karay... Na k Awaam ka Jeena Haram kar dey!

  3. Pata nai policy makers kaunsi ahmako'on ki Jannat mein rehtay hain?
    Yahan kai kai ghantay light nai aati, and ye chalay electric vehicles and their charging stations k peechay!

    Automobile sector ko agar Incentives dainay hi hain to hybrid vehicles p dain, duties kamm kar dein and non-hybrid vehicles per b duty kamm kar dein, at least upto 1300 cc.

    Inko koi samjhaye k agar aap Toyota Vitz hi ki example ley lein, then 1300 cc Vitz is much much better to its 1000 cc sibling, in all aspects. Uski performance b behtar hai, fuel economy b achi hai, and emissions b comparable hain, to 1000 cc Vitz.

    [Choti garion k engines ko zyada zoor lagan parta hai... Unhoon ney drag b bear karni hai, passengers and their luggage b, aur gari ka apna boujh b uthana hai]

  4. people should use crypto currencies to bypass these killer taxes aka THEFTS

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