KARACHI: The most notable increase stems from the projected Rs750 billion collection of Petroleum Development Levy (PDL) against Rs135 billion collected in FY22.
Based on market estimates, the targeted Petroleum Development Levy (PDL) will only be achievable through maximizing the levy at Rs30/liter on the sale of Motor Gasoline (MoGas) and Hi-Speed Diesel (HSD).
Another notable increase includes a targeted Gas Infrastructure Development Cess (GIDC) collection of Rs200 billion against Rs20 billion collected the year prior.
The PTI government had abolished GIDC on the condition of the clearance of its payables. The higher collection target (10x YoY) under the GIDC head likely implies the collection of the overdue balance.
Corporate Taxation: The corporate tax rate for Pakistan’s banking sector will increase to 45%, including the super tax, compared to 39% in FY22.
The corporate tax for other entities will remain unchanged at 29.0%. Notably, the budget proposed a 2% tax on all persons, inclusive of companies, earning annual income in excess of Rs300 million.