FY2023 third quarterly report: Rs301bn shortfall in oil, gas taxes

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LAHORE , May 16, 2023: As per the documents released by the department of finance regarding the collection of taxes in the ongoing financial year’s third quarter, the losses of Rs301.4 billion were reported in the collection of taxes related to oil and gas.

The government planned to collect Rs1,079 billion in this regard – Rs165 billion more than the previous year.

The amount on petroleum levy was increased by Rs105 billion – from Rs750 billion in the fiscal year 2022 to Rs855 billion in the fiscal year 2023 – due to the stringent conditions of the IMF.

Particularly, in the first nine months of the ongoing fiscal year (July-March), the government was able to collect only Rs507 billion out of its planned amount of Rs809 billion.

More importantly, the government has not been able to collect the desired amount regarding the tax collection and the trend is unchanged in the third quarter of the FY2023. In the third quarter of FY2023, losses of almost Rs301.4 billion have been reported.

In the first quarter of FY2023, the government collected only Rs86.5 billion against the desired Rs269.7 billion.

As per the documents, the government was able to collect only Rs362 billion petroleum levy against the planned amount of Rs641.2 billion.

In terms of tax collection in the gas development infrastructure, the government was able to collect only Rs7 billion against the planned amount of Rs22.5 billion and the collection of natural gas development was Rs11 billion out of Rs30 billion.