PPP for withdraw of increase in general sales tax on petroleum products

September 30, 2015 Off By Web Desk

KARACHI: Pakistan People’s Party (PPP) has rejected the decision of petroleum prices to keep unchanged in October.

On the recent decision of petroleum prices, the PPP Senator, and Chairman Senate Standing committee on Finance and Revenue, Saleem Mandviwalla, termed the step “a daylight robbery” on the people of Pakistan.

“People of Pakistan are not given relief from the sharp decline of petroleum prices in the international market,” he said and added that the business and industrial community and general public were deprived of the fruits of slash in international oil prices by not passing on its full benefit.

Senator Mandviwalla asked how can a 45% GST on diesel be justified by a government which had promised to reduce the 16 % GST it inherited from the PPP government?

He also criticized the government move of not changing oil prices despite sharp reduction in petroleum products’ prices in international market during the past few months. In fact, the government has given them the gift of increase in General Sales Tax (GST) from 20 percent to 25.5 percent on motor sprit, 17 to 24 percent on HOBC, 20 to 30 percent on kerosene oil, 36.5 to 45 percent on high speed diesel and on light diesel oil from 20 percent to 29.5 percent.

He said that the hard-pressed people were still buying the daily use commodities on higher prices, if the government cut its taxes prices of petroleum products could come down to RS.50 per liter.

Senator Mandviwalla reminded that diesel is the primary fuel that is being consumed by transporters in their buses, farmers in their harvesting machinery and merchants in their generators and hence fluctuations in the price of diesel affect them directly. He demanded to withdraw increase in general sales tax on petroleum products as it would directly affect the end users.