ISLAMABAD – Federal government has proposed revision in maximum limit of charging petroleum development levy in the budget for fiscal year 2022-23.
At present, the maximum limit of charging PDL on petrol and diesel is Rs50 per litre. The government is charging the upper limit of PDL as this is the most appropriate shortcut to fetch much needed revenue for the national exchequer.
Cash strapped government is using this tactics as other taxation measures are not helping due to pressure on businesses in the aftermath of global recession, Ukrain-Russia war, unprecedented rupee devaluation, import restrictions and volatile political situation in the country.
Though inflation is a global phenomenon, it is much higher in Pakistan due to devaluation of local currency and high prices of imported petroleum products. Upward revision in limit of PDL showed that the government has kept the option of charging more on petrol and diesel to compensate for low tax collection under other heads. It means, inflation can increase further if the government goes for the option of enhancing petrol and diesel prices by jacking up PDL.