Govt considers Rs72bn tax on OMCs’ extraordinary profits during regional conflict
Key takeaways
- According to sources in the Ministry of Finance, OMCs reportedly made profits of around Rs130 billion on petroleum products during the period of heightened regional tensions.
- Officials said the recovered amount could be used for petroleum subsidies, relief in electricity tariffs, and reducing the fiscal deficit.
- Sources added that the government is examining legal and financial mechanisms to recover the extraordinary profits from OMCs through the proposed windfall gain tax in the next fiscal year.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: The government is considering imposing a windfall gain tax on oil marketing companies (OMCs) in the upcoming FY2026-27 budget to recover an estimated Rs72 billion earned as extraordinary profits during the recent Middle East conflict, sources said.
According to sources in the Ministry of Finance, OMCs reportedly made profits of around Rs130 billion on petroleum products during the period of heightened regional tensions.
Sources said the proposed recovery could be made under Section 99D of the Income Tax Ordinance, 2001, which empowers the federal government to impose an additional windfall tax of up to 50% on unexpected or extraordinary profits earned by companies in specified sectors.