In a statement issued here President Islamabad Chamber of Commerce and industry (ICCI) Sheikh Amir Waheed urged the government to pass on full benefits of reduced oil prices in the international market to local consumers.
Sheikh Amir Waheed said that Federal Board of Revenue (FBR) has enhanced sales tax on Motor Spirit from 17 per cent to 21.5 per cent and on High Speed Diesel Oil from 25.5 per cent to 27.5 per cent, which was not justified.
The government was already charging Rs8 per liter petroleum levy on HSD, Rs10 on petrol, Rs6 on light diesel oil and Rs3 on kerosene oil while further increases in sales tax on some POL products would surge transportation costs and further push up inflation, making it harder for local businesses to operate, he remarked.
ICCI’s Senior Vice President Muhammad Naveed and Vice President Nisar Mirza said that the Oil and Gas Regulatory Authority (OGRA) had recommended a Rs5.26 per liter cut in petrol price, but the government has reduced petrol by only Rs2.07 per litre which has deprived the people of real benefits of reduced oil prices in the international market. They said that whenever oil prices went up, government lost no time in passing on its full impact to the consumers, but whenever, the oil prices came down, its real benefit was not passed on to the people which was not a wise approach.
They urged the government to consider further reductions in POL prices and make significant decreases in taxes on these products which would enhance the purchasing power of consumers and facilitate the growth of business activities.
