KARACHI: Following the International Monetary Fund’s proposal for a carbon tax, petrol prices are poised to rise by Rs20 to 30 per liter, ARY News reported on Friday.
Additionally, an increase in the general sales tax could potentially push petrol prices beyond Rs 300 per litre.
The IMF has recommended prioritizing the operation of new power plants to meet the country’s energy needs and to maximize production capacity, potentially reducing capital charges by 18 percent. Currently, the failure to utilize electricity from new power plants results in an annual burden of Rs 2,000 billion on the public.
In lieu of raising the general sales tax by 18 percent in the upcoming budget, the IMF has suggested imposing a carbon tax on petroleum products. This move is anticipated to not only reduce civilian oil demand but also alleviate the tax burden on provincial shares.
Journalist Mehtab Haider’s report indicates that the government is contemplating imposing a carbon tax of 20 to 30 percent in the next budget. Presently, a petroleum development levy of Rs 60 per liter is enforced, and if the proposed carbon levy is approved, an additional Rs 20 to 30 will be levied per liter.
