The federal government has proposed a significant hike in the development levy on petroleum products in its budget for the fiscal year 2024-25.
The proposal, which was presented in the National Assembly, includes an increase in the development levy on petrol from Rs 60 to Rs 80 per litre.
The finance minister presented the budget, outlining the government's fiscal plans and strategies for the upcoming year. Among the key measures proposed, the increase in petroleum development levy (PDL) stands out, reflecting the government's need to bolster revenue amid economic challenges.
According to the budget documents, the development levy on petrol will see a steep rise of Rs 20 per litre. This increase, from the current Rs 60 to Rs 80 per litre, is expected to generate substantial additional revenue for the government.
However, it is also anticipated to have a ripple effect on the cost of living, as transportation and production costs are likely to rise in response.
In addition to the hike in petrol, the government has also proposed an increase in the levy on light diesel oil. The development levy on light diesel oil is set to rise from Rs 50 to Rs 75 per litre. This Rs 25 increase is one of the more substantial adjustments in the proposed budget.
Meanwhile, the development levy on kerosene has been maintained at the existing rate of Rs 50 per litre, offering some respite to users of this essential fuel, often relied upon in rural and low-income households.
