ISLAMABAD - The federal government has projected that non-tax revenue (NTR) collection from petroleum sector will jump to Rs1.7 trillion within next three years (2024-25 to 2026-27).
The major portion of the non-tax revenue collection from the petroleum sector will consist of Petroleum Development Levy which will grow to Rs1.438 trillion during FY2026-27 from around Rs918 billion during FY2023-24.
As per the medium-term budget strategy paper for FY2024-25 to FY2026-27 released by the Finance Division, the non-tax revenue collection will enhance to Rs 1.503 trillion in the ongoing fiscal year 2024-25, Rs 1.631 trillion in 2025-26 and Rs 1.7 trillion in 2026-27, said the strategy paper. Non-tax revenue (NTR) of the federal government includes taxes other than FBR and receipts including surplus profits of regulatory bodies, dividends, mark-ups and others. Government has enacted special provisions in the Public Finance Management Act, 2019 for collection of this revenue.
The main source of NTR from petroleum sector (oil &gas) is Petroleum Development Levy (PL) on oil, royalties on oil/gas/windfall levy against crude oil, Natural Gas Development Surcharge, Gas Infrastructure Development Cess(GIDC) and Petroleum Levy on LPG.
In the ongoing fiscal year, it is estimated the total collection of NTR will be Rs1.503 trillion, which includes Rs1.281 trillion collection from Petroleum Development Levy (PL), Rs190.5 billion royalties on oil/gas/windfall levy against crude oil, Rs25.6 billion as natural gas development surcharge, Rs 2.5 billion Gas Infrastructure Development Cess(GIDC) and Rs 3.5 billion as Petroleum Levy on LPG.
For FY2025-26, it has been projected that the NTR will be Rs 1.631 trillion, which includes Rs 1.388 trillion Petroleum Development Levy (PL), Rs 206.8 billion royalties on oil/gas/windfall levy against crude oil, Rs 27 billion as natural gas development surcharge, Rs3 billion Gas Infrastructure Development Cess(GIDC) and Rs 4.5 billion as Petroleum Levy on LPG.
For FY2026-27, it has been projected that the NTR will be Rs 1.7 trillion, which includes Rs 1.438 trillion from Petroleum Development Levy (PL), Rs 221.6 billion royalties on oil/gas/windfall levy against crude oil, Rs 30 billion as natural gas development surcharge, Rs 5 billion Gas Infrastructure Development Cess(GIDC) and Rs 5.5 billion as Petroleum Levy on LPG.
It is worth mentioning here that the government is currently charging Rs 60 per litre petroleum levy on petrol and high speed diesel. However, for the FY2024-25, the government has upward revised the Petroleum Levy ceiling to Rs 70 per litre. The Petroleum Levy will go up from around Rs 918 billion during the FY 2023-24, to Rs 1.281 trillion during the ongoing fiscal 2024-25, to Rs 1.388 trillion in FY 2025-26 and to Rs 1.438 trillion during FY 2026-27.
