ISLAMABAD (Dunya News) – The federal government decided on Tuesday to impose Rs2.5 carbon levy on petroleum products and furnace oil in the federal budget for 2025-26.
According to the Finance Ministry, a decision has been made to impose a carbon levy of Rs 2.5 per litre on petrol, high-speed diesel, and furnace oil. In 2026-27, the carbon levy rate will be increased to Rs5 per litre.
Sources in the Finance Ministry say that the carbon levy is being imposed as per IMF demands.
Read also: Govt increases withholding tax on cash withdrawals by non-filers
The estimated revenue from the carbon levy in the upcoming fiscal year is Rs45 billion.
No carbon levy will be imposed on kerosene oil and light diesel oil.