Budget FY 2024-25: Govt proposes 33 pc hike in levy on petrol, diesel

ISLAMABAD – Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb announced a proposed 33 percent increase in the levy on petrol and diesel during his Financial Year 2024-25 budget speech, amid uproar in the National Assembly on Wednesday.

The federal government, led by the Pakistan Muslim League-Nawaz (PML-N), has put forth a substantial proposal to elevate the petroleum levy on petroleum products. Specifically, the government recommended increasing the levy on petrol and diesel from Rs. 60 to Rs. 80 per litre.

### Key Proposals in the Budget
- **Petroleum Levy**: The proposal includes a 50 percent surge in the levy on high-octane, light diesel, and ethanol, setting it at Rs. 50 per litre.
- **Sales Tax on Mobile Phones**: An 18 percent sales tax on various categories of mobile phones has been proposed.
- **Import Duties**:
  - **Luxury Cars**: Increased import duties on luxury cars valued at over $50,000.
  - **Steel and Paper Products**: Enhanced import duty on steel and paper products.

Furthermore, the finance minister elaborated on significant alterations in tax policies aimed at augmenting revenue. These include a proposal to abolish exemptions on various items, contingent on their categories.