The federal government has been granted authority to increase oil tax to its discretion through a presidential ordinance, effectively eliminating any previously imposed on the tax.
Previously, the Petroleum Development Levy (PDL) had a maximum RS 60 per liter limit, which then increased to RS 70 per liter.
However, after the issuance of the presidential ordinance, there is now no limit in the amount of tax.
According to the details, on Tuesday, a presidential ordinance was issued to abolish the fifth calendar, which had governed the limits in the oil tax.
With the repealed schedule, the government is no longer obliged by restrictions and can now impose the tax in any case you choose.
The sources said that under the fifth schedule now abolished, the government was legally restricted to a ceiling of RS 70 per liter, but that condition no longer applies.
Despite a decrease in world oil prices, the government decided not to approve the benefit to the public. Instead, oil tax increased through the ordinance.
Under the new ordinance:
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The gasoline tax has increased by RS 8.02 per liter, which carries the total tax to RS 78.02 per liter.
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The diesel tax has increased by RS 7.01 per liter, which takes the total to RS 77.01 per liter.
Despite these increases, the Ministry of Finance has issued a notification that indicates that oil prices will remain unchanged during the next 15 days.
Previously, the federal government decided not to reduce national oil rates, choosing instead allocate savings to key infrastructure and development projects in Baluchistan, according to a statement issued by Prime Minister’s office (PMO) on Tuesday.
Prime Minister Shehbaz Sharif, during a federal cabinet meeting, announced that the fundamental funds of the world price of oil price would be used to drear the N-25 strategic road, the Chaman-Quetta-Kalat-Khuzdar-Karachi route.
