ISLAMBAD: The Ministry of Finance has released its fiscal report revealing that the government collected Rs 1,220.21 billion in petroleum levy during the 2024–25 financial year, compared to Rs 1,020 billion in the previous fiscal year.
This marks a 20 percent increase in petroleum levy collections.
According to tax experts, the main reason for the sharp rise in revenue during FY2024-25 was the increase in the petroleum levy from Rs 70 to Rs 75 per litre, even though no sales tax was charged on petroleum products.
They noted that while sales tax is shared with the provinces, the petroleum levy remains entirely with the federal government, meaning the increased levy adds directly to the public’s financial burden.
Experts pointed out that from the current fiscal year, an environmental support levy of Rs 2.50 per litre has been imposed.
As of August 1, the petroleum levy on petrol has been raised from Rs 75.52 to Rs 78.02 per litre.
Similarly, the levy on diesel rose from Rs 74.31 to Rs 77.01 per litre, with an additional Rs 2.50 per litre environmental support levy now also being collected.
Tax analysts further suggested that petroleum levy rates are expected to gradually rise in the coming years, potentially adding more strain on consumers.
