The Senate Standing Committee on Finance has raised concerns over the government’s decision to hike the petroleum development levy on petrol by Rs. 20 per liter, bringing it to Rs. 80, and has urged the government to devise a scheme where motorcyclists are exempted from an increase in levy.
Chaired by Senator Saleem Mandviwalla, the committee emphasized that this increase would disproportionately burden motorcycle users.
During the committee meeting, members urged the Petroleum Division to devise a mechanism to shield motorcyclists from the proposed levy hike. Officials informed the committee that the Rs. 20 per liter increase would generate an additional Rs. 240 billion in revenue, exceeding the current fiscal year’s levy collection target by Rs. 40 billion.
The officials were of the view that it would be very difficult to devise a scheme where motorcyclists are exempted from an increase in levy.
Furthermore, the committee declined to approve the proposal for increasing the petrol levy by Rs. 20 per liter and suggested instead raising the levy on high-octane fuel to Rs. 100 per liter. Senator Mandviwalla emphasized that the government should consider increasing taxes and levies on affluent segments rather than placing further financial strain on low-income groups.
