Government not to give relaxation on petroleum levy
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%
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