As preparations for the upcoming financial year's budget intensify, the government is considering various tax proposals aimed at bolstering revenue streams and promoting environmental sustainability.
Among these proposals is the imposition of a carbon levy ranging from Rs20 to Rs30 per litre on petroleum products and fossil fuels.
Sources close to the matter revealed that the proposed carbon levy is intended to discourage the consumption of these products, aligning with global efforts to combat climate change and reduce carbon emissions.
This levy, to be imposed in the form of non-tax revenue, underscores the government's commitment to environmental conservation and pollution prevention.
Highlighting the rationale behind the carbon levy, sources emphasized its role in curbing environmental pollution and fostering a cleaner, greener future. Revenue generated from this levy will be channeled into federal government initiatives aimed at environmental preservation and sustainable development.
Furthermore, there are plans to possibly change the income tax, sales tax and duties regimes in the budget.
It's worth noting that the proposal comes amidst existing levies on petroleum products, including a petroleum levy of Rs60 per litre already imposed. Additionally, the International Monetary Fund (IMF) has reportedly demanded an 18% GST on petroleum products, further indicating potential changes in tax policies to be introduced in the upcoming budget.
