ISLAMABAD – The federal government has authorized the Federal Board of Revenue (FBR) to collect Petroleum Development Levy (PDL) and Climate Support Levy (CSL) imposed on petroleum products across the country. Under the new arrangement, FBR will act as an agent of the Ministry of Petroleum and Petroleum Division for the collection of these levies.

According to reports, FBR has formally issued an SRO introducing amendments to the Sales Tax Rules 2006. The notification also establishes a mechanism for the collection of PDL and introduces a Domestic Sale Invoice (DSI) system for collecting both CSL and PDL.

Under the revised rules, registered buyers of petroleum products, including registered petrol pumps, will be required to provide detailed purchase records in the format prescribed by FBR. These details include NTN numbers, CNIC numbers, buyer names, nature of purchase, relevant documents including HS codes, transaction dates, sale type, quantity sold in liters, sale value, and the rate and amount of Petroleum Development Levy and Climate Support Levy collected on each transaction.

The notification further states that if any institution or buyer is exempt from PDL or eligible for zero-rated sales, they must cite the relevant SRO and schedule, along with details of the items sold.

FBR officials said that under the notification, the authority will now perform the collection of Climate Support Levy and Petroleum Development Levy on behalf of the Ministry of Petroleum and Petroleum Division. For this purpose, amendments have been made to Annexure-L of Sales Tax Return Form STR-7 through SRO 800(I)/2026.

Officials added that the Climate Support Levy was introduced through the Finance Bill 2025 and became effective on July 1, 2025, aimed at mobilizing financial resources to address environmental and climate-related challenges.

They clarified that while there will be no change in the levy rates or tax collection heads, FBR will now serve as the official collection agent for the relevant ministry.