There is a possibility of a carbon levy of Rs5 per liter being imposed on petrol and diesel during the negotiations with the IMF, as reported by national media on Sunday.
According to a report by Geo News citing government sources, talks between Pakistani officials and the IMF’s technical delegation on the upcoming fiscal year’s budget and other matters are expected to begin from tomorrow.
The report states that discussions will include several new tax measures and expanding the tax net. The Ministry of Finance and FBR officials will participate in the negotiations with the IMF technical team.
According to the report, sources stated that a final decision will be made on tax concessions for new Special Economic Zones (SEZs) and Export Processing Zones (EPZs). The IMF has opposed tax exemptions for SEZs and the export sector. The current concessions for SEZs will end by 2035.
During the IMF talks, a decision is expected regarding the imposition of a Rs5 per liter carbon levy on petrol and diesel to tackle the effects of climate change. If the decision to impose the carbon levy is finalized, it will be included in the Finance Bill, as repoted.
It was also mentioned that the new budget may include tax incentives for electric vehicles, which will be granted under the National Electric Vehicle Policy 2025–30. Under the proposed electric vehicle policy, EV charging stations will be established across the country. Measures to bring various sectors, including retailers and wholesalers, into the tax net will also be finalized.
