RECORDER REPORT

LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) have appreciated the caretaker government for reducing prices of petroleum products by lowering the general sales tax in compliance with the Supreme Court’s directions.

PIAF Chairman Irfan Iqbal Sheikh in a statement on Thursday said 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 public money by imposing additional taxes to the tune of about Rs10 billion.

He said 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 Rs47.16 billion in taxes. After the recent increase in prices, per litre petrol cost constituted of Rs11.4 in general sales tax, Rs10 in way of petroleum levy, inland freight margin of Rs3.14, withholding tax amounting to Rs0.59, distribution margin of Rs2.55 and dealer commission of Rs3.35.

Similarly per litre diesel price after the recent increase consisted of Rs8 for petroleum levy, GST of Rs20.2, inland freight charges of Rs1.42, withholding tax of Rs0.47, distributor margin of Rs2.51 and dealer commission of Rs2.67. All these additional charges which were paid at the end by consumers put an unfair burden on the public and industry, he added.

He said Pakistan was generating a major share of electricity through furnace oil and increase in POL prices which makes the cost of manufacturing activities unviable for the private sector. He said that increase in diesel price also enhances transportation cost and create additional problems for the agriculture sector as most of the tube wells were running on diesel.

The PIAF chief stressed for further cut in GST as government has reduced it 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, he added.