News Analysis |
Pakistan Industrial and Traders Associations Front (PIAF) chairman Irfan Iqbal Sheikh has appreciated the Caretaker government for reducing the prices of petroleum products by lowering the general sales tax on directives of the Supreme Court of Pakistan.
While issuing a press statement along with senior vice chairman Tanvir A Sufi and vice chairman Shahzeb Akram, chairman PIAF said that the relief in petroleum prices will not only provide the much-needed respite to the masses but also reduce the cost of production and give a boost to economic activity, as the government was grabbing the public money by imposing additional taxes in the tune of about Rs 10 billion.
He said that the taxes on all petroleum products was increased whenever their prices fall in global market, as the petroleum consumers were forced to pay a total amount of Rs. 47.16 billion in taxes. After the recent price hike, consumers were paying a per liter tax of Rs 24.77 and the diesel prices had a per liter tax of Rs 29.91.
Chairman PIAF stressed for further cut in GST as the government has reduced the GST from 17 percent to 12 percent on motor spirit and kerosene oil and from 31 percent to 24 percent on high-speed diesel, which is still high.
After the recent increase in prices, per liter, petrol cost constituted of Rs. 11.4 in General Sales Tax, Rs. 10 in way of petroleum levy, inland freight margin of Rs. 3.14, withholding tax amounting to Rs. 0.59, distribution margin of Rs. 2.55 and dealer commission of Rs. 3.35.
Similarly per liter diesel price after the recent increase consisted of Rs. 8 for petroleum levy, GST of Rs. 20.2, inland freight charges of Rs. 1.42, withholding tax of Rs. 0.47, distributor margin of Rs. 2.51 and dealer commission of Rs. 2.67. All these additional charges which were paid at the end by consumers put an unfair burden on the public and industry.
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He said that Pakistan was generating a major share of electricity through furnace oil and increase in POL prices makes the cost of manufacturing activities unviable for the private sector. He said that an increase in diesel price also further enhances transportation cost and create additional problems for the agriculture sector as most of the tube wells were running on diesel.
Chairman PIAF stressed for further cut in GST as the government has reduced the GST from 17 percent to 12 percent on motor spirit and kerosene oil and from 31 percent to 24 percent on high-speed diesel, which is still high.