The Pakistan Economy Watch (PEW) on Sunday said prices of petroleum products in the country are far more than the international market which is hurting masses and every segment of the economy.
Petroleum prices can be reduced if FBR starts taxing nobility which will automatically reduce pressure on the poor masses, it said.
Government has no other option but to heavily tax the petroleum imports which are chocking the economic growth, PEW President Dr Murtaza Mughal said.
He said that all the important petroleum products are attracting double digit taxation which has penalised the masses. Situation can take a positive turn if corruption is reduced in the tax administration.
Last year the consumers of diesel paid Rs 29.57 as GST on every litre while they paid six rupees on every litre is form of petroleum levy which had a very negative impact on economy as diesel is the most popular fuel.
Consumers paid Rs 15.22 on every litre of petrol as GST, they paid Rs 13.18 on every litre of kerosene oil and Rs 12.21 on every litre of light diesel which help government earn billions.
Closure of CNG in Punjab hiked the use of petrol and income of the government while government is making around Rs 25 billion on account of GST and Rs 10 billion on account of petroleum levy every months, he said.
High prices of petrol and diesel should be reduced as it continue to damage critical sectors of economy and hit masses from all directions therefore it can be termed as unjustified.