A senior government official told The Express Tribune that the Finance Division wanted to collect Rs2 billion on LPG at any cost to meet the revenue target for the current financial year. Following this, the Petroleum Division imposed a petroleum levy on locally produced LPG, despite having no legal provision to impose it. Officials said that the Finance Division had also conveyed to the Petroleum Division to collect Rs160 billion as petroleum levy on petroleum products. During the last few months, the government had been collecting zero petroleum levy on kerosene oil and light diesel oil (LDO) to keep their prices low compared to prices in the international market. Officials said that the Finance Division may also impose some other tax on petroleum products to meet the shortfall caused by zero petroleum levy on these two products.

Source: The Express Tribune December 10, 2017 04:18 UTC