ISLAMABAD (June 27 2009): The government, without wasting any time to generate revenue, has started collecting \'carbon surcharge\', levied on petroleum products from oil marketing companies (OMCs), from June 14, replacing petroleum development levy (PDL). The budget was announced in Parliament on June 13 and soon after the announcement of tax, customs authorities started collecting \'carbon surcharge\' on petroleum products. The OMCs have approached Petroleum Ministry saying that customs authorities have started collecting carbon surcharge from June 14 whereas previous experience shows that all budget measures pertaining to relief and taxes were implemented from July 1, start of new fiscal year. Petroleum Ministry has sought explanation from Finance Ministry about effective date of carbon surcharge on petroleum products as this seems an unusual move by the tax machinery. Sources said that during a meeting held in the Finance Ministry on June 23, Finance Ministry officials had clarified that carbon surcharge would replace PDL on petroleum products from July 1, 2009. However, customs officials are of the view that implementation of carbon surcharge on petroleum products is applicable from June 13, the day of budget announcement. The government has made amendment in the Petroleum Products (Petroleum Development Levy) Ordinance 1961, in the Finance Bill 2009 to replace PDL with carbon surcharge. According to the amendment, every refinery and every company shall pay to federal government carbon surcharge according to the rates prescribed in the budget on petroleum products produced by a refinery or purchased by a company for sale as specified in Fifth Schedule. According to sources, customs authorities are collecting carbon surcharge on petroleum products following the fixed rate announced in Finance Bill 2009. According to Finance Bill, the government is to charge Rs 8 per litre carbon surcharge on high speed diesel oil (HSDO), Rs 10 per litre on motor spirit (MS), Rs 6 per litre on kerosene oil, Rs 3 per litre on Light Diesel Oil (LDO) and Rs 14 per litre on HOBC. The government has targeted collection of carbon surcharge on petroleum products at Rs 122 billion in next financial year budget 2009-10 and Rs 12 billion collection through carbon surcharge on compressed natural gas (CNG). However, the government exempted CNG from carbon surcharge after facing severe criticism from the parliamentarians as well as public. In Pakistan, earnings through PDL collection on petroleum products was supposed to be invested in projects aimed at development of petroleum sector, but it has never been used on such projects. It is utilised to bridge budget deficit and the government has replaced PDL with carbon surcharge aimed at meeting revenue target set for the next financial year 2009-10.