ISLAMABAD – The price of petrol and high-speed diesel along with other POLs are slated to move up as International Monetary Fund asked Pakistan to impose 18 percent General Sales Tax (GST) on fuel products.
Sources familiar with the development revealed that global lender told Pakistani authorities to end sales tax relaxation on petrol and other POLs.
Amid the ongoing negotiations, Sharif’s government has also been told to implement sales tax on petroleum products while record levy of Rs60 remains on all petroleum products.
Petrol Price in Pakistan
The 18 percent General Sales Tax on Petrol speaks of Rs50 hike in per litre petrol in Pakistan. As of March 2024, Rs.279.75 per litre and with the GST, it will cross Rs300 mark.
| Petrol Price | Price |
| Super | Rs.279.75 |
| Diesel | Rs.285.56 |
IMF officials also suggested that Pakistan should impose 18 percent sales tax on all items like food, medicine, petroleum products, and stationery. The global lending agency also recommends applying this rate to unprocessed food, stationery, medicine, and other items.
The new taxes are being introduced to jack up and generate 1.3 percent of GDP revenue, equivalent to Rs1,300 billion. The new recommendations come as part of a staff-level agreement between the IMF and Pakistan on the second and final review under Pakistan’s Stand-By Arrangement.
Pakistan’s economic and financial situation lately improved due to prudent policy management and increased inflows from multilateral and bilateral partners since the first review.
Govt collects Rs142 tax and levy per liter on petrol, diesel
