60 rupees on petrol, 18% GST should also be imposed, IMF
The International Monetary Fund (IMF) has recommended the government to impose a levy of Rs 60 on petrol and restore the 18% GST on petrol, which was abolished in March 2022.
In addition, the International Monetary Fund says that local a single rate of Federal Excise Duty (FED) should be levied on locally manufactured cigarettes, whether the project is local or non-local.
On the other hand Petroleum Development Levy (PDL) should also be levied on machinery that pollutes the environment.
The IMF has also asked the FBR to step up border controls by gradually increasing excise duty on domestically produced things and luxury goods such as yachts to prevent oil imports from particularly sensitive areas.
The illegal supply of the product can be curbed. The IMF has also suggested that e-cigarettes be taxed at par with local cigarettes, and in the medium term, the IMF has said that once revenues rise, other Federal excise duty on many items should be abolished.
In which there are no factors such as negative externalises. The potential for large incomes is highly inelastic demand or the luxury side.
The development levy has changed several times in recent years. But in the financial year 2023 they were substantially increased, in July 2022 the petroleum levy development rate on petrol was Rs 20 per litre.
It has been reduced to Rs 50 per litre from November 2022 and Rs 60 per litre by September 2023.
