ISLAMABAD-The federal government’s tax collection from oil and gas products has shown massive increase of around 63 percent during first quarter (July-September) of this fiscal year mainly because of higher prices.
Total revenue collection from oil and gas sector in the first quarter amounted to about Rs86.565 billion, compared to about Rs53.113 billion in same period last year showing an increase of 62.98 percent. The tax collection came from the account of Gas Infrastructure Development Cess (GIDC), Gas Development Surcharge (GDS), petroleum levy, discount retained on crude oil, royalties on oil and gas and windfall levy against crude oil, according to the latest data of the ministry of finance. The collection on account of petroleum levy amounted to Rs48 billion in July to September, which is higher by 255 percent when compared with the same period of previous year. The federal government needs to collect Rs855 billion on account of the petroleum levy during the current fiscal year as per agreement with the International Monetary Fund (IMF). Currently, the government is not charging General Sales Tax (GST) on petroleum products, as it is collecting only petroleum levy. The government has recently increased the petroleum levy on petrol to a record high of Rs50 per litre. At present, there is a petroleum levy of Rs30 per litre on high octane blending component (HOBC), Rs8 per litre on kerosene oil, Rs12.59 per litre on high-speed diesel, Rs6 per litre on light diesel oil.
According to the data, the discount retained on crude oil has generated Rs4.304 billion in first quarter of the current fiscal year, which was Rs3.584 billion in the same period of the previous year. Meanwhile, collection from royalties on oil and gas has recorded at Rs20.672 billion in July to September period as compared to Rs21.742 billion in the corresponding period of the last year. Similarly, the government has accumulated Rs3.007 billion from Gas Infrastructure Development Cess in the first quarter of the year 2022-23, which was Rs6.5 billion in the same period of the previous year. The federal government has collected Rs5.485 billion from Natural Gas Development Surcharge, Rs4.919 billion from windfall levy against Crude Oil and Rs702 million from petroleum levy on LPG. The collection from oil and gas products comes under non-tax collection of the federal government. Federal non-tax revenue has recorded at Rs234.919 billion in the first quarter of the current fiscal year (July to September) of the ongoing financial year. The breakup of Rs234.919 billion showed that the government has collected Rs28.844 billion from mark-up on public sector entities and others, dividend Rs24.651 billion; profit of Pakistan Telecommunication Authority (PTA) and others Rs13.076 billion; defence receipts Rs3.794 billion; passport fee Rs6.717 billion and others Rs38.512 billion during the July to September period of the ongoing financial year.