According to Finance Bill 2009-10, the government will charge Rs 8 per litre carbon surcharge on high speed diesel oil (HSDO), Rs 10 per litre on motor spirit (MS), Rs 6 per litre on kerosene oil, Rs 3 per litre on light diesel oil (LDO), Rs 14 per litre on HOBC, and Rs 6 per kg on CNG. During the current financial year (2008-09), PDL collection has been estimated at Rs 129.237 billion against the budget estimates of Rs 14 billion. The government collected Rs 90 billion PDL on petroleum products during ten months (July-April) of the current financial year (2008-09).
The government is currently collecting gas development surcharge on gas and is going to impose carbon surcharge (new tax) on CNG in coming financial year to enhance revenue collection. The government has targeted Rs 299.37 billion gas development surcharge on natural gas during the next fiscal year (2009-10) against revised target of Rs 262.83 billion during the ongoing fiscal year. This will be in addition to carbon tax collection on CNG.
The government has estimated Rs 7.973 billion collection through royalty on oil and Rs 27.057 billion from royalty on gas during the next fiscal year. The discount retained on local crude oil price has been estimated at Rs 15.045 billion.
According to budget documents, a development surcharge on petroleum products was levied under the petroleum products (Development Surcharge) Ordinance 1961 and rules were framed accordingly. The word ''development surcharge'' was substituted with the words ''Petroleum Development Levy'' (PDL) on June 29, 2001. In budget 2009-10, PDL has been converted into ''carbon surcharge'' on POL products, say budget documents.
The development surcharge on natural gas is levied under the Natural Gas Surcharge Ordinance 1967. In pursuance of the said Ordinance, the federal government has to fix the sale price for the consumers and also to prescribe a price for the gas companies.
The difference between the two prices is the margin available to the government as development surcharge. The prescribed price of gas companies undergo change from time to time to cover the well head cost and the cost of transmission and distribution of gas. The surcharge on natural gas is transferred to the provinces according to the production of gas in a province. However, the government has given no reason to impose ''carbon surcharge'' on CNG from the next fiscal year 2009-10.