ISLAMABAD: The National Assembly Standing Committee on Finance and Revenue has raised serious concerns over the government’s proposed Climate Support Levy, questioning its purpose and demanding a clear roadmap for climate-related projects before imposing additional financial burdens on citizens.
During a detailed review of the National Tariff Policy 2025-30 and provisions of the Finance Bill 2026-27, committee members directed tax authorities to redraft the proposed levy and clearly define its objectives. Lawmakers also expressed concerns that reduced import duties on scrap materials could pose environmental challenges, while approving an increase in Islamabad’s token tax, a move expected to impact middle-class vehicle owners.
The committee, chaired by MNA Naveed Qamar, examined the newly introduced climate levy alongside the existing petroleum levy amid discussions on Pakistan’s commitments under the IMF-backed climate resilience framework.
Finance Secretary Imdad Ullah Bosal informed members that Pakistan had entered into an agreement with the IMF on climate resilience measures. However, committee members questioned the rationale for collecting climate-related levies in the absence of visible environmental projects.
Chairman Naveed Qamar criticized the government for imposing levies without launching tangible climate initiatives, warning that such an approach could undermine Pakistan’s international credibility.
“You take money from the IMF, impose levies, but start no projects,” he remarked, describing the government’s climate efforts as inadequate and urging officials to present at least one concrete climate-related project.
Officials briefed the committee on measures undertaken under the IMF’s Resilience and Sustainability Facility (RSF) programme. However, Mr. Qamar argued that the government’s actions amounted to little more than “lip service” on climate issues, saying policy implementation remained inconsistent with stated commitments.
PPP lawmaker Hina Rabbani Khar noted that Pakistan had once been recognized globally for its leadership on climate advocacy but had gradually lost that standing. She urged the government to restore its leadership role, emphasizing that Pakistan remains among the countries most vulnerable to climate change and environmental disasters.
The committee also reviewed proposed amendments to the Petroleum Products (Petroleum Levy) Ordinance, 1961, focusing on strengthening enforcement mechanisms against defaulting oil marketing companies (OMCs).
Mr. Qamar observed that OMCs merely collect government levies and should not be allowed to retain public funds. Expressing concern over delays in levy payments, he directed authorities to introduce stricter enforcement measures, including automatic suspension of petroleum supplies to any defaulting OMC after 30 days of non-payment.
The committee further instructed the Petroleum Division to redraft the legislation to eliminate discretionary powers allowing instalment-based repayments and extensions for defaulting companies, arguing that such provisions weaken compliance and delay government revenue collection.
The review forms part of the committee’s ongoing clause-by-clause examination of the Finance Bill 2026-27, aimed at strengthening fiscal accountability and ensuring greater transparency in taxation and revenue measures.
Story by Mubarak Zeb Khan
