ISLAMABAD: The government collected revenue of over Rs 138 billion from six different heads of oil and gas in the first six months of this fiscal year, up by over 106 per cent when compared with Rs 67bn collected in the period last year.

This was in addition to about Rs220bn general sales tax on oil and gas collected in first six months, putting the total revenue receipts from oil and gas at about Rs358bn. As a result, the petroleum sector has emerged as the top revenue yielding sector for the government.

According to official figures of the ministry of finance, the government collected Rs57.6bn as petroleum levy on oil products in July-December 2012-13 against Rs20.3bn collected during the same period last year, showing an increase of a whopping 184pc.

Royalty on oil and gas stood at Rs29.8bn compared to Rs26.4bn in the first half of last fiscal year, an increase of about 13pc.

On top of that, the government earned a windfall levy of Rs11.4bn during first six months of this fiscal year against zero collection under this head last year. Likewise, the government also collected Rs25bn as Gas Infrastructure Development Cess (GIDC) against no collection last year because the GIDC was introduced with effect from July 1, 2012.

The development surcharge on gas in first half of the current fiscal year stood at Rs7.6 billion against Rs8.9bn of same period last year, a decline of about 15pc.

Likewise, the discount retained on domestic oil also declined during this year and stood at Rs7.45bn in first six months compared with Rs11.2bn of the same last year, down by 33.5pc.

On top of these non-tax revenue yields, the government is estimated to have collected about Rs40bn as general sales tax on natural gas in first six months and about Rs180bn as GST on oil products, a senior government official told Dawn.

With this pace of revenue collection through indirect taxation, the oil and gas sector is estimated to surpass the budgetary projection of Rs590bn. This includes Rs70bn as general sales tax on natural gas and another Rs250-260bn as GST on sale of petroleum products. The two heads – oil and gas sales – are subject to 16 per cent GST.

“The oil and gas related taxes are anticipated to contribute about Rs700bn this year”, said the official, adding the Rs590bn target was based on assumed international prices at the time of budget preparations that have appreciated since then.

This is addition to about Rs15bn the government was expected to earn as windfall from surplus funds of energy sector regulators this fiscal year.In addition, the budget 2012-13 set a revenue target of Rs120bn as petroleum levy on various petroleum products. The petroleum products are subject a fix petroleum levy of Rs8 per litre on high speed diesel, Rs10 per litre on petrol, Rs14 on High Octane Blending Component, Rs9 per litre on E-10 Petrol (blended), Rs6 per litre on kerosene, Rs3 per litre on

light diesel and Rs11,486 per ton on locally produced liquefied petroleum gas (LPG).

The government is also collecting Infrastructure Gas Development Cess at Rs300 per mmbtu (million British Thermal Unit) on fertiliser and CNG in Khyber Pakhtunkhwa, Balochistan and Potohar, Rs200 per mmbtu on CNG in Sindh and Punjab, Rs100 per mmbtu on industrial consumers, Wapda, KESC and Independent Power Producers.

The government expects to collect about Rs30bn next year through this development cess. These rates have since been increased.

The government had set a target of Rs31bn as gas development surcharge and Rs22.5bn as discount retained on local crude oil. Another Rs22bn are targeted to be collected this year as royalty on crude oil and Rs36bn as royalty on natural gas.

In addition to this, the government had also targeted a windfall levy against crude oil of Rs5.3 billion this year and Rs1 billion petroleum levy on LPG. The target has already been surpassed in first half of the year.