Wednesday June 29, 2022

Govt estimates Rs450 bn as petroleum levy

June 13, 2020

ISLAMABAD: The government is estimated to pull in Rs450 billion from petroleum levy in the upcoming fiscal year of 2020/21, compared with a revised estimate of Rs260 billion in the outgoing fiscal year, the budget document showed on Friday.

It clearly indicates intentions of the incumbent regime to maintain petroleum levy at maximum level of Rs30 per litre in the entire fiscal year. The government initially envisaged Rs216.025 billion in the last budget for 2019/20, which was revised up to Rs260 billion. Also, the government brought changes in recovery of non- tax revenues through the Finance Bill 2020-21.

The FBR granted powers to Commissioners Inland Revenues for recovery of non- tax revenues.

“If the amounts as per sections 40B and 40D are not paid within ninety days of having been due, the Finance Division, in consultation with the concerned division may refer any defaulter’s case to the Commissioner (Inland Revenue) concerned for recovery as it were an arrear of income tax,” the finance bill said.

“The administrative ministries and divisions shall be responsible for policy formulation and administration of non- tax revenue as per the distribution of business approved by the government.”

The finance division will advise ministries and divisions in policy formulation as per the strategic priorities of government’s revenue policies. Non-tax revenue will be levied and charged in accordance with the provisions of relevant laws and such other applicable instruments.

Notwithstanding anything to the contrary contained in any other law for the time being in force, public entities as defined under section 36 will pay non-tax revenue representing mark-up on loans lent by the government, as per the amortisation schedule attached with the financing agreement. It represents dividend against the government’s equity investments as declared by the respective board of directors out of accrued profits of the entity provided that if public entity is wholly or substantially owned by the government. Proposals with regard to declaration of dividend and allocation for reserve fund, capital requirements etc. will be examined by the controlling Division 198 in consultation with the Finance Division before deliberations and decision in the board of directors.

It also represents surplus profits as per the provisions of relevant laws and any other amount owed to the government as accrued provided that the public entities will pay accrued amounts of non- tax revenue as per clauses (a) to (d) being the first charge on their gross revenues or profits, as the case may be. Non tax revenue representing foreign grants and payments, receipts from provision of services, rents, recovery of overpayments, sale of property etc. will accrue on completion of the prescribed process.

The revenue collection offices will be responsible for collection of all the accrued amounts of non-tax revenue from liable public entities, individuals, firms, companies as per the time specified in the relevant laws and rules.

The finance division will prescribe procedures for monitoring and reporting of non-tax revenue by the revenue collection offices. Deposit in federal consolidated fund is subject to section 40B. The revenue collection offices will deposit the collected amounts in federal consolidated fund promptly without delay in prescribed manner under the head of account specified by the finance division in consultation with the Controller General of Accounts. The revenue collection offices will not retain or appropriate the collected amounts to meet departmental expenditures except through budgetary mechanism as provided under Articles 80 to 83 of the Constitution.?