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Petrol tax likely to increase further amid IMF pressure

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Web Desk

ISLAMABAD: According to sources in the finance ministry, the government may raise taxes on petrol again as it seeks to generate more revenue and meet IMF conditions.

Officials say that petroleum levy collection is already expected to exceed the annual target of Rs. 1468 billion, but talks are underway to further increase the levy in the coming months.

This comes days after the government increased the petroleum levy on petrol by about Rs. 27 per litre, taking it above Rs. 107 per litre, as part of IMF-linked financial measures.

According to media reports, the IMF has continued to pressure Pakistan to end subsidies and rely more on direct taxation, including higher petroleum levies, to maintain fiscal discipline. The government has reportedly assured the IMF that it will continue with strict fiscal management.

Pakistan has already seen fuel prices rise sharply in recent months due to global oil shocks and regional instability, with domestic prices rising due to taxation rather than international price movements.

Web Desk

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