The Lahore High Court (LHC) heard a petition on Wednesday challenging the Petroleum Development Levy (PDL). During the hearing, the court serves notices to all relevant parties in the case and sought formal replies from the respondents.
A bench of the Lahore High Court reviewed the arguments presented by the petitioner’s lawyer. The counsel stated that the increase in petroleum levy to an unusually high level is illegal and unjustified. He argued that petroleum products are being used as a tool for revenue collection instead of public service.
The lawyer further said that unfair taxation has placed a heavy burden on transporters and small business owners. He added that rising fuel costs are affecting daily life and economic activity across the country. The petitioner requested the court to issue an urgent order for a significant reduction in the petroleum development levy.
In response to the petition, the court serves notices to the federal government and other concerned departments. The bench directed them to submit detailed replies before the next hearing. The case will proceed after reviewing the responses from all parties.
Meanwhile, government financial estimates suggest a rising trend in petroleum levy collections. Reports indicate that the government is expected to set a target of Rs1.727 trillion for the next financial year. This figure is significantly higher than the current year’s benchmark.
Sources said the government is likely to achieve the existing fiscal year target of Rs1.468 trillion without difficulty. During the first eleven months of the fiscal year, collections reached Rs1.43 trillion. Another Rs140 billion is expected in June, which may push total receipts to around Rs1.57 trillion.
The development highlights the growing reliance on petroleum levy as a key source of revenue. Critics argue that this approach increases financial pressure on consumers. Jamaat-e-Islami chief Hafiz Naeem ur Rehman has also raised concerns over the total amount collected since 2001.
He stated that more than Rs8,066 billion has been recovered from the public through the petroleum levy since its introduction. As the case continues, the court serves notices remain a key procedural step in moving the matter forward.
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