ISLAMABAD, Sept 17: The government has collected highest-ever revenue on oil and gas, amounting to about Rs157 billion during the 2006-07 financial year.The amount included general sales tax (GST) collection of Rs64 billion on petroleum

products.

According to the oil price revision announced by the Oil and Gas Regulatory Authority (Ogra) on Saturday, the government has slightly increased oil companies’ margin, dealers’ commission and inland freight equalisation margin on motor spirit and high octane blending component and reduced the petroleum development surcharge.

However, the overall price regime has been kept unchanged to keep GST collection at the same level. The government collects a GST of Rs7 and Rs8.46 a litre on motor spirit and HOBC,

respectively, in addition to about Rs9 and Rs16, respectively, as petroleum development levy on the two products.

At the same time, the government has doubled inland freight equalisation margin on motor spirit from Re1 to 1.98 per litre and from Rs2.05 to Rs3.85 per litre on HOBC.

The margin is the transportation cost the government collects on petroleum products to maintain uniform prices at 29 depots across the country. No explanation was given about the increase in transportation cost.

According to official statistics, the government collected tax revenue of Rs889.7 billion during the financial year ending on June 30, 2007.

Total tax revenue increased from 9.8 per cent of gross domestic product (GDP) in 2005-06 to 10.2 per cent of GDP in 2006-07, showing an improvement in tax-to-GDP ratio.

Likewise, the total revenue in 2006-07 amounted to Rs1.298 trillion or 14.9 per cent of GDP, showing an increase of 14 per cent of the GDP in 2005-06.

The statistics indicated that direct taxes in 2006-07 stood at Rs334.2 billion, against Rs214 billion during the previous year.

The government said the total expenditure on debt-servicing amounted to Rs369 billion in 2006-07 that included Rs319 billion as servicing cost of domestic debt and Rs50 billion spent on foreign debt servicing.

The consolidated accounts for 2006-07 showed that total development expenditure stood at Rs434 billion. This included Rs251 billion spent by the federal government on development and Rs182 billion spent by provincial governments.

The accounts also suggested that the government expenditure on retirement and pensions reached about Rs42.2 billion in 2006-07 as against Rs40 billion in 2005-06, showing an increase of about 5.5 per cent.