Rs 114 billion PDL collected during 2008-09

[Naveed Yaseen]

ZAFAR BHUTTA
ISLAMABAD (August 10 2009): To meet the revenue target committed to International Monetary Fund (IMF), the government collected Rs 114 billion on account of petroleum development levy (PDL) dduring financial year 2008-09 Sources in Finance Ministry told Business Recorder that the government netted Rs 41 billion PDL during the last quarter (April-June) of 2008-09.

PDL collection during July-March period of last fiscal year amounted to Rs 73 billion. The government had targeted Rs 14 billion PDL collection in the 2008-09 budget but due to reduction in global oil prices, PDL collection surpassed the target and reached Rs 114 billion.

Government had also committed to World Bank to collect at least Rs 30 billion PDL in first three months (January-March). Government collected Rs 44.067 billion during the period under review against Rs 49.5 billion PDL projection. Against PDL collection, government released Rs 66.456 billion price differential claims (PDC) on petroleum products to oil marketing companies (OMCs) during last fiscal year.

This amount was paid to OMCs on the provision of subsidy to the consumers on petroleum products in line with global high oil prices. Crude oil price in international market stood at $147 per barrel in July 2008 and government collected Rs 107 million PDL during the said month. Government collected Rs 1.999 billion PDL in August, Rs 2.817 billion in September, Rs 3.531 billion in October, Rs 8.882 billion in November, Rs 11.503 billion in December 2008 as government did not pass on the impact of reduced oil prices to the consumers.

PDL collection went up to Rs 15.979 billion in January that declined to Rs 13.715 billion in February. Government reduced the prices of Motor Spirit, HOBC, Kerosene Oil and Light Diesel Oil (LDO) by Rs 1.67 per litre, Rs 1.77 per litre, Rs 1.44 per litre and Rs 1.67 per litre respectively effective from August 1.

Even after the recent reduction in oil prices, the government continues charging Rs 11.93 per litre petroleum levy (PL) on Motor Spirit, Rs 16.40 per litre on HOBC, Rs 6 per litre on kerosene oil and Rs 3 per litre on LDO.

This is in addition to General Sales Tax (GST) of Rs 6.12 per litre on JP-1, Rs 5.79 per litre on JP-4,RS 6.46 Per litre on JP-8, Rs 8.34 per litre on petrol, Rs 10.62 per litre on HOBC, Rs 7.99 per litre on kerosene oil and Rs 7.35 per litre on light diesel oil (LDO).

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