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Government Considers Imposing Sales Tax and Increasing Levy on Petroleum Products
Sources reveal potential changes in the budget: sales tax on petroleum products and increased levies on petrol and diesel from Rs 60 to Rs 80 per liter.
ND
by News Desk
2024-06-10
Government Considers Imposing Sales Tax and Increasing Levy on Petroleum Products

The government is considering significant changes in the upcoming budget that could affect petroleum products. Proposals include the imposition of sales tax on petroleum products and an increase in the existing petroleum levy on petrol and diesel.

 

Currently, the sales tax rate on petroleum products is zero. However, sources indicate that there is a proposal to introduce a sales tax on these products, with plans to increase the rate gradually over the next financial year. Additionally, there is a proposition to raise the petroleum levy from the current Rs 60 to Rs 80 per liter for both petrol and diesel.

 

The collected levy of Rs 60 per liter on petrol and diesel is already in effect. If both the sales tax and the levy are increased, the financial relief typically expected from such measures will not be passed on to the consumers, potentially leading to higher fuel prices.

 

This proposed fiscal strategy is part of broader efforts to generate additional revenue, but it also raises concerns about the potential economic impact on consumers and businesses that rely heavily on petroleum products.
Tagged:

Economy

Petroleum

SalesTax

FuelPrices

Budget2024

PetroleumLevy
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