Pakistan’s federal government has recorded a significant increase in non-tax revenue during the fiscal year 2023-24. The total non-tax revenue rose by Rs1,998 billion compared to the previous year, according to official reports.
The main driver of this growth was a sharp rise in petroleum levy collections. The government collected Rs1,220 billion from petroleum levies, which is Rs201 billion higher than the previous year’s Rs1,019 billion. This increase was supported by gradual hikes in levy rates on petrol and diesel.
Currently, the petroleum levy is set at Rs78 per liter, including a new Climate Support Levy of Rs2.50 per liter. This additional levy is expected to generate Rs48 billion this year. Officials have confirmed that the petroleum levy rates will continue to rise incrementally throughout the fiscal year.
Besides petroleum levies, non-tax revenue also benefited greatly from the State Bank of Pakistan’s profits. The SBP transferred Rs2,619 billion to the government last year, making it the second-largest contributor to non-tax revenue.
Overall, Pakistan’s non-tax revenue reached Rs4,959 billion in 2023-24, showing strong growth and helping the government meet its fiscal targets. The government expects this trend to continue, with projected non-tax revenue of Rs5,147 billion for the current fiscal year 2024-25.
Experts say that rising non-tax revenue demonstrates the government’s increased reliance on non-tax sources rather than traditional taxes. This strategy helps stabilize the economy and supports public finances.
In summary, Pakistan’s non-tax revenue surge is a positive sign of fiscal health. With petroleum levies and SBP profits as key contributors, the government is better positioned to meet its budgetary goals.
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