Government’s Petrol Tax Revenue Soars 42%, Collects Rs 371 Billion from Public
News:
In a significant fiscal development, the Government of Pakistan has collected a staggering Rs 371 billion in petroleum taxes from the public during the first quarter of the current fiscal year — marking a 42% surge in revenue compared to the same period last year.
According to official data, the sharp rise in tax revenue is largely attributed to higher petroleum levy rates and stable oil demand despite elevated prices. The government’s decision to maintain a strong levy structure helped boost collections even amid global market fluctuations.
Economic analysts suggest that while the surge in revenue provides short-term relief for the national exchequer, it has also intensified inflationary pressure on consumers already struggling with record fuel prices.
Finance Ministry sources indicate that the government is relying heavily on petroleum levies to meet its budgetary targets set under the IMF agreement, which emphasizes non-borrowed revenue generation.
However, experts warn that excessive dependence on indirect taxes like fuel levies could slow down economic activity and further burden the middle and lower-income segments of society.
The government has yet to announce any immediate plan to reduce fuel taxes, despite growing public calls for relief at the pump.
