June 4, 2003	Wednesday	Rabi-us-Sani 3, 1424

ISLAMABAD, June 3: The government is targeting to collect around Rs130-135 billion revenue during 2003-04 from the energy sector, including general sales tax (GST) on electricity and surcharges on gas and petroleum products.

Officials told Dawn on Tuesday that an amount of around Rs40 billion was expected to be collected on account of GST and wealth tax on electricity during the fiscal 2003-04.

Similarly, an amount of Rs80-85 billion is expected to come from surcharge on natural gas and petroleum development levy (PDL) on petroleum products. Another Rs12-15 billion will be earned by the government on account of royalty on production of local oil and gas fields.

The officials said the provisional target suggested that Wapda would generate around 62,000 units during fiscal 2003-04, which would yield around Rs210 billion, and if GST and wealth tax was also included, the utility would collect around Rs240 billion.

During the current fiscal, Wapda is estimated to end up with Rs218.7 billion revenue generation, excluding GST and wealth tax, and Rs246 billion total revenue, including GST and wealth tax by the end of June.

Similarly, KESC is expected to contribute around Rs8-9 billion on account of GST and wealth tax. The KESC’s total revenue during the next fiscal is estimated at around Rs43 billion, Rs3 billion up from the expected Rs40 billion during the current fiscal.

Over the years, the petroleum sector has emerged as the largest single sector revenue contributor to the national exchequer.

During the current fiscal, budget target under this head was fixed at Rs60.5 billion. This included Rs15 billion as surcharge on natural gas and Rs45.5 billion as PDL. Mainly because of high petroleum prices in the international market, the government earns windfall benefit of higher revenues.

Around Rs48 billion on this account were collected in the first nine months (July-March 2002-03), and the amount has now reached slightly over Rs60 billion in 11 months, the officials said, quoting provisional figures and added that total collection would be revised to Rs66-68 billion by end of this month.

During the fiscal 2001-02, the budget target for gas surcharge and PDL was estimated at Rs47 billion, including Rs15 billion on account of surcharge on gas and Rs32 billion as PDL. However, the collection at the end of the year amounted to Rs54 billion, including Rs15 billion surcharge and Rs39 billion PDL.

The surcharges are leviable on petroleum products and natural gas and represent differential between production cost and the fixed sale price. The surcharge on petroleum products was replaced by PDL in 2001.

Royalty on crude oil and development surcharge on natural gas, after deducting two per cent collection charges, are transferred to the provinces on the basis of well-head production.

Royalty excise duty on natural gas, after deducting two per cent commission, is transferred to the provinces under article 161(10) of the Constitution.