Petrol, diesel, and other fuel categories are set to become pricier as the federal government is considering a 5 percent sales tax on petroleum products in the upcoming federal budget for 2024-25, as reported by sources familiar with the matter.
At present, the sales tax rate on petroleum products is zero, while the petroleum levy stands at Rs. 60 per liter for both Motor Spirit (MS) and High-Speed Diesel (HSD). Sources have cautioned that the petroleum levy might increase to at least Rs. 80 per liter in the fiscal year 2024-25.
The budget for fiscal year 2024-25 is anticipated to introduce significant tax measures aimed at boosting government revenue, potentially paving the way for a new financial support program from the International Monetary Fund (IMF).
