Oil and gas sector contributed Rs1 trillion in revenues to national exchequer during 2016-17

Islamabad: A local newspaper has reported that the oil and gas sector was the major contributor to national exchequer by contributing over Rs1 trillion in revenue during financial year 2016-17.

Annual increase in total revenue collection for FY 2016-17 was reported to be 11pc. Main reasons attributable for the increase in revenue collection were higher sales tax rates, rising international oil prices and rising consumption of the commodity.

These figures exclude provincial tax collections via oil and gas sector, taxes earned via power generation which uses furnace oil for 70pc of its needs, natural gas and liquefied natural gas.

Rs350b was collected through non-tax and other taxes by the Ministry of Finance during FY 2016-17, registering a rise of 6pc from same period last year (SPLY) when it was reported to be Rs330b.

Petroleum levy collection registered an increase too of 12pc, reaching Rs167b for FY 2016-17 from Rs140b last year.

‘Other taxes’ was a major constituent of contribution to the national exchequer as Rs73.3b was earned under natural gas development surcharge (GDS), recording a 55pc increase from SPLY.

Collections under the Gas Infrastructure Development Cess (GIDC) fell due to pending lawsuits that contributed to a paltry figure of Rs42b earned by the government against target of Rs145b for FY 2016-17.

Royalty on Crude Oil and Natural gas recorded a fall in revenue collection for FY 2016-17 of Rs5b reaching Rs53b from Rs58b reported in SPLY.

During FY 2016-17, it was reported Federal Board of Revenue (FBR) earned over Rs650b in indirect taxes from the oil and gas sector, reporting a 12pc increase from SPLY when it was recorded at Rs582b.

Oil consumption saw a 10pc year-on-year (YoY) increase during FY 2016-17. Sales from oil and lubricant, petroleum were recorded at Rs1.88t in FY 2016-17, registering a rise of 19pc from SPLY.

An FBR official commented that POL products have a 47pc share in domestic collection of sales tax.

The revenue generated from POL products via general sales tax during import stage was recorded at Rs235b, registering a 7.3pc increase from SPLY.

In terms of custom duty, POL products kept its second position of customs duty with payments worth Rs51. GST on domestic was recorded at Rs20b

- Advertisement -
- Advertisement -

Must Read

OGRA jacks up LPG price by Rs 21 per KG for...

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has increased the price of Liquefied Petroleum Gas (LPG) by Rs 21 per Kilogram for the...