Govt eyes Rs1.28tr in petroleum development levy collection

The federal government has set an ambitious target to collect Rs1.28 trillion through the petroleum levy in the fiscal year 2024-25, marking a 47.4 per cent increase over the previous year’s goal. In the outgoing fiscal year, the government collected Rs960 billion from the petroleum levy, surpassing the original target of Rs869bn. The budget for the upcoming fiscal year projects an additional Rs321bn in collections. Moreover, Rs28bn is expected to be collected from the levy on crude oil, the same amount collected in the outgoing year compared to a target of Rs35bn. The newly introduced levy on gas is projected to generate Rs400 million, despite not being included in the original budget for 2023-24, but Rs220m was still collected under this head.