ISLAMABAD (November 14 2002) : The government has announced that the current levy of Re 0.34 per litre on POL products would remain intact till December 31, 2004.
The 'Petroleum Levy', which was to expire on December 31, 2003 has been extended further for a period of one year ie up to December 31, 2004.
Economic Co-ordination Committee (ECC) of the Cabinet considered the summary submitted by the Privatisation Division on 'Energy Sector Issues in Privatisation Transitions' and decided to retain the current levy of Rs 0.34 per litre on POL products, due to expire on December 31, 2003, till December 31, 2004.
ECC further decided that the proceeds of Petroleum Levy will be used to adjust the historical outstanding differential of the light sulphur furnace oil and high sulphur furnace oil (LSFO/HSFO).
The government has estimated Rs 60500 million from surcharges i.e. Rs 45500 million from petroleum levy and Rs 15000 million from Natural Gas during 2002-2003. During 2001-2002, the initial estimates of Rs 32000 million was enhanced to Rs 39000 million taking into account petroleum levy.
Official sources told Business Recorder on Wednesday that the government's move to extend this levy during 2002, which was actually expiring on December 31 2002, indicates that the authorities intend to ensure adequate collection from POL products till 2004.
The government changes the target of this levy every year, which was charged at the import/export stage and on sale of POL products, sources added.