ISLAMABAD: The government is preparing to recover around Rs72 billion from oil marketing companies (OMCs) through a proposed windfall gain tax in the upcoming budget 2026–27, according to sources in the Ministry of Finance.
Officials said the levy may be imposed under Section 99D of the Income Tax Ordinance by the Federal Board of Revenue (FBR). The move is aimed at taxing “extraordinary profits” earned by oil marketing companies during recent regional tensions and fluctuations in petroleum product pricing.
Sources added that the recovered amount could be used to provide relief in petroleum subsidies, stabilise electricity tariffs, and help reduce the overall fiscal deficit.
Meanwhile, Prime Minister has constituted a high-level committee, chaired by the finance minister, to oversee preparations for the federal budget. The committee will review performance of ministries, development spending, and proposed reforms in the energy sector.
The panel is also expected to examine the allocation and utilisation of funds under the climate support levy. Under International Monetary Fund (IMF) conditions, the climate support levy is expected to be doubled from July 1.
In addition, officials indicated that reforms related to “rightsizing” of government institutions are under review, with all ministries directed to submit performance reports.
The upcoming budget may also include improvements in salary structures and incentives for foreign-qualified teaching staff as part of broader reforms in the education sector.
