FBR Empowered to Collect Levy on Petroleum Products

ISLAMABAD — The Government of Pakistan has officially transferred the authority to collect levy on petroleum products to the Federal Board of Revenue (FBR), marking a significant shift in the country’s energy taxation framework.
According to FBR officials, all registered petrol stations purchasing petroleum products will now be required to submit complete details of their transactions to the revenue authority. The move is aimed at bringing greater transparency to the petroleum sector and curbing widespread tax evasion.
Under the new mechanism, petrol pumps will be obligated to provide real-time data on purchases, sales, and stock levels. FBR has stated that non-compliance could result in strict penalties and potential cancellation of registration.
Economic analysts believe the decision could generate billions of rupees in additional revenue for the national exchequer and help close long-standing loopholes in the petroleum supply chain.
The development comes as Pakistan continues efforts to broaden its tax base and improve documentation of the economy under ongoing economic reform programs.