The government has proposed a significant increase in petroleum levy targets for the upcoming fiscal year. The proposal was presented by Finance Minister Muhammad Aurangzeb during the National Assembly budget session. The move is part of broader efforts to boost non-tax revenue. It reflects a shift toward higher indirect revenue collection.
According to budget details, the petroleum levy on liquefied petroleum gas (LPG) has been set at Rs3.45 billion. Moreover, the government expects to collect Rs50 billion under the climate support levy. Therefore, these measures are expected to contribute significantly to federal revenues.
In addition, a levy on off-the-grid captive power plants has been proposed at over Rs15.73 billion. The government said these measures aim to widen the revenue base. Furthermore, they are designed to support fiscal consolidation efforts. Consequently, multiple energy-related sectors will be impacted.
The finance minister said the budget focuses on balancing revenue generation with economic stability. He added that non-tax sources will play a key role in meeting fiscal targets. In addition, the government is introducing new levies to support climate and energy reforms.
Overall, the proposed levies are part of a wider strategy to strengthen public finances. The measures will now be reviewed during parliamentary debate. Therefore, final approval will depend on legislative approval of the budget.