ISLAMABAD: The Economic Coordination Committee (ECC) after deliberation allowed to increase petroleum levy from Rs30/litre to Rs50/litre on RON 95 and above with effect from November 16, 2022, which is a luxury good used in expensive vehicles.

The decision was taken during a meeting presided over by Finance Minister Ishaq Dar, said a press release.

The Federal Board of Revenue presented a summary on increase in the rate of sales tax on the high octane blending component (HOBC). It was conveyed that the rates of sales tax on the POL products were reduced to zero from February 01, 2022, which put pressure on FBR’s efforts to achieve its revenue targets.

The energy ministry submitted a summary on high-speed diesel (HSD)/gas oil premium and informed that due to the difference of premium on import of HSD for importing OMCs and PSO, there was an unsustainable position for importing OMCs and smooth supply of HSD in the country.

In order to ensure sustained supply/import security, the ECC after detailed discussion allowed a premium on HSD subject to maximum capping at $15/BBL for importing OMCs other than PSO for the months of November and December 2022.

The ECC also approved technical supplementary grants of Rs5 billion for the conduct of the seventh population census.