As the government gears up for the next financial year’s budget, it’s exploring tax proposals to boost revenue and promote environmental sustainability.
One proposal under consideration is a carbon levy of Rs20 to Rs30 per litre on petroleum products and fossil fuels.
The aim of this proposed levy is to discourage consumption of these products, aligning with global efforts to combat climate change and reduce carbon emissions.
The carbon levy, to be implemented as non-tax revenue, reflects the government’s commitment to environmental conservation and pollution prevention.
Sources stress the importance of the carbon levy in tackling environmental pollution and fostering a cleaner, greener future. Revenue generated will support federal government initiatives for environmental preservation and sustainable development.
Additionally, there are plans to potentially revise income tax, sales tax, and duties regimes in the budget.
It’s noteworthy that this proposal comes amid existing levies on petroleum products, including a petroleum levy of Rs60 per litre already in place. Moreover, the International Monetary Fund (IMF) has reportedly suggested an 18% GST on petroleum products, indicating potential changes in tax policies in the upcoming budget.
