I. Background

1. This refers to Important relevant TLQCs in trail, in blue, in italic and after double line (a) 3391 of 12.12.25 about I MF directions: Improve FBR Structure and Reduce FBR Rules making authority & Officers Powers (b) 3183 of 30.6.25 about Budget 2025-26: Finance Act - Gazette version including Petroleum Development Leavy matters

2.   We also refer to several other TLQCs including (a) 3387 of 12.11.25 about IMF direction: Tax Simplification Plan by May 2026 (b) 2580 of 20.12.23 about Tax Simplification and Huge Electricity & Petrol Free from Taxpayers money

II. Updated Commentary

1. General

1.1 Further to KQU 3691 of 8.12.25, being an important matter, we would inform you about Video Pakistan told to Release Tax Simplification Plan by Next Year including which also cover matters in para 2 (Attachment 191.1) in ensuing paragraph, with emphasis ours in bold & Underline for quick reading.

1.2 IMF has called for audit findings related to the Petroleum Levy to be published within one year, as part of efforts to enhance transparency and oversight in Pakistan’s fiscal management.

2. Summary of Petroleum Development Levy (PDL)

2.1 General

As your good self may be aware, the Petroleum Development Levy (PDL) is a tax on fuel (petrol, diesel) collected by the government, primarily to boost non-tax revenue and fund power sector subsidies, reducing circular debt, often as part of IMF conditions. The rate has fluctuated, increasing significantly in 2024-2025, with plans to potentially exceed Rs100 per liter, alongside a new carbon levy, to meet fiscal targets.

2.2 Recent Changes by FA 2025

The levy increased from around Rs60-80 to Rs78 (petrol) and Rs77 (diesel) per liter by amending Petroleum Products (Development Surcharge) Ordinance, 1961 when it was to over Rs100 per liter starting 1.7.25 A new Rs5 per liter carbon levy was also introduced. 

2.3 Impact 

Higher PDL directly increases fuel prices for consumers, impacting transportation costs and inflation, while also contributing significantly to government revenue. 

III.    Multiplication

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this QC for the Noble Cause to Impart Knowledge and reduce costing by taking up PDL reduction in the upcoming Budget through your Association, etc, Else be ready for increase in the upcoming budget. 

III. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com.

Best regards for Here & Hereafter

Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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