LAHORE – New tax changes are likely to push Petrol, and Diesel Prices higher in Pakistan from December 1 as government mulled implementing sales tax on petroleum products.
Reports in local media said petrol price in Pakistan is expected to increase with implementation of new taxes. Petroleum products could see increase after 18 percent sales tax imposition in light of directives of International Monetary Fund (IMF).
IMF turned down Islamabad’s proposal for 1-2pc sales tax, pushing government to comply with 18% rate. However, the failure to implement IMF’s demand may jeopardize vital refinery upgrade projects worth $5-6 billion.
Currently, the price of petrol stands at Rs248.38 per liter, while diesel is priced at Rs255.14. The upcoming tax shift will see a reduction in the petroleum levy by Rs15 per liter, with the 18% sales tax replacing it as the new revenue-raising measure. This change aims to meet fiscal targets but could also marginally increase cost.
As Pakistan grapples with rising fuel prices and economic challenges, these developments are likely to have wide-reaching implications on the country’s energy sector and broader economy.
Earlier this month, the government decided to keep petrol and High-Speed Diesel (HSD) prices unchanged till Dec 1, with petrol remaining at Rs248.38 per litre and HSD at Rs255.14 per litre.
