Govt earns record Rs93b surcharges on oil and gas

ISLAMABAD — Pakistan government earned an all time high Rs93 billion on account of surcharges and royalties on oil and gas during the last financial year ended on June 30, 2007.

By A Correspondent

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Published: Wed 5 Sep 2007, 8:57 AM

Last updated: Sat 4 Apr 2015, 11:33 PM

According to latest official estimates, this Rs93 billion earning was almost 94 per cent higher than original estimates of Rs48 billion and this was mainly due to high international prices.

This is in addition to about Rs64 billion revenues the petroleum products yielded last year to the government through indirect taxes like general sales tax. As such, total revenue-both in direct and indirect levies on natural gas and oil products comes to about Rs157 billion, sources in the government suggest.

Last week, the government increased petroleum development levy (PDL) on petrol to ensure that its annual Rs25 billion target for PDL collection for the current year is easily surpassed, they said. At the same time, the government disallowed the oil marketing companies and dealers to charge their commissions on PDL.

Never before the country could collect such huge revenue on oil and gas although surcharges used to be treated as a major revenue generating source through direct taxes. Last financial year (2006-07) the government had announced in the budget to treat petroleum products as non-revenue item. The highest ever direct revenue on account of oil and gas was in 2005-06 when it stood at Rs75.5 billion.



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