Fri, 29 Mar 2024
( 19 Ramadan 1445 )
Fri, 29 Mar 2024

UR

IMF for Rs60 levy, 18pc GST on petrol

22 March, 2024 09:31

The International Monetary Fund (IMF) has suggested the government to raise the levy on petrol to Rs60 and also restore the 18 per cent GST on petrol, which was abolished in March 2022.

The International Monetary Fund says that the same rate of Federal Excise Duty (FED) should be applied to locally produced cigarettes, whether the project is local or non-local. The Fund also suggested petroleum development levy on machinery that cause pollution.

The IMF has also asked the FBR to step up border controls by gradually increasing excise duty on domestically manufactured cards and luxury goods such as yachts, especially for oil by-products from sensitive areas.

The IMF has also proposed taxing e-cigarettes on a par with local cigarettes. In the medium term, the IMF has called for the elimination of federal excise duties on many other items once incomes rise.

The Fund says that excises are levied on a wide range of goods, including tobacco, carbonated drinks, motor cars, cement, telecommunication services and petroleum and natural gas products.

Regarding excise on petroleum products, the amount of federal excise duty was 0.7 percent of GDP in FY2023, excise on other items was 0.4 percent of GDP, mostly derived from federal excise duty on cigarettes.

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