Wednesday , January 27 2021
Breaking News
Home / Chambers & Associations / Trade Associations / PIAF welcomes Rs10b relief through cut in oil prices
PIAF welcomes Rs10b relief through cut in oil prices

PIAF welcomes Rs10b relief through cut in oil prices

LAHORE: Pakistan Industrial and Traders Associations Front (PIAF) Chairman Irfan Iqbal Shiekh 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 (SC).

While issuing a press statement along with Senior Vice Chairman Tanvir A Sufi and Vice Chairman Shahzeb Akram, PIAF chairman 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 to the tune of about Rs10 billion.

He said that the taxes on all petroleum products was increased whenever their prices fall in global markets, as the petroleum consumers were forced to pay a total amount of Rs47.16 billion in taxes.

After the recent price hike consumers were paying Rs24.77 per litre tax and where diesel consumers paid a tax of Rs29.91 per litre.

After the recent increase in prices, per litre petrol cost constituted of Rs11.4 in General Sales Tax (GST), 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 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 were paid by the end consumers putting an unfair burden on the public and industry.

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 creates additional problems for the agriculture sector as most of the tube wells were running on diesel.

PIAF chairman stressed for a further cut in GST as the government has reduced the GST from 17 per cent to 12 per cent on motor spirit and kerosene oil and from 31 per cent to 24 per cent on high-speed diesel, which is still high.