Petrol levy rate may rise to Rs60 per litre
In a move that could further fuel inflation, the government is considering increasing the fuel excise duty to a record high of Rs 60 per liter for petroleum products. The increase is part of the government’s plan to bring in around Rs 2.9 billion in PNBP in the next fiscal year.
The proposal aims to create additional fiscal space for spending, as the government expects spending on pension payments and public policies to increase by 30% compared to the previous budget for this resources told The Express Tribune that the finance ministry has proposed to increase the additional tariff by Rs 10 per liter to collect around Rs 870 crore from this source in FY 2023-24. The current rate is IDR 50,000 per liter.
Although this year it is expected to rise to $100 per barrel as Saudi Arabia cuts 100,000 bpd, the finance ministry has proposed a price hike. The oil price forecast for the next fiscal year will remain high, with the central bank forecast at Rs 308/- per dollar. In the current fiscal year, the government has set a target of collecting Rs 855 crore through fuel tax. However, in the first nine months of the current fiscal, collections only amounted to Rs 362 crore.
Non-tax revenue is not shared with the states, and the federal government is increasingly relying on these sources to fund its expenses. The government may also explore other sources, such as property tax and windfall levy on banks to meet its target of collecting Rs 2.9 billion in non-tax revenue in the next fiscal, the sources said. In the current budget year, the government is targeting non-tax revenue of IDR 1.9 billion.
