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Levy on Petrol Price | Do We Actually Pay Taxes? | Breaking Views With Asadullah | Irshad Bhatti
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313 views11likes47:4192newshdTvOriginal Release: 2026-05-11

In developing economies, governments often face challenges in collecting direct taxes due to low tax-to-GDP ratios and widespread tax evasion, leading them to rely on indirect taxes like petroleum levies to meet revenue targets. When IMF programs require specific tax collection targets, governments may increase petroleum levies beyond initial restrictions to compensate for uncollected direct taxes, which disproportionately affects lower-income citizens who spend a larger percentage of their income on fuel. This creates a situation where the poor bear the burden of government revenue needs while wealthier individuals and businesses often evade taxes through various means.

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