Govt approves imposition of Rs50 petroleum levy per litter

Govt approves imposition of Rs50 petroleum levy per litter

Web Desk
June 29, 2022

Miftah says no intention to pass on full amount of PL
Ayesha claims no extra pressure of IMF to integrate amendments in budget
NA passes federal budget 2022-23

Federal Finance and Revenue Minister, Miftah Ismail here on Wednesday clarified that the government has no intention to pass on the full amount of petroleum levy (Rs 50 per liter) as incorporated in the Finance Bill 2022-23 to the consumers.

“The government has got the permission from you (the house) to impose up to Rs. 50 per litter levy on petroleum products but there is no hope and intention to take the levy up to this figure”, he said while speaking in the National Assembly.

The minister also informed the members of the house that at present there is zero petroleum levy on the petroleum products.

Later on, Minister of State for Finance and Revenue Ayesha Ghous Pasha on Wednesday dispelled the impression that the incumbent government had taken extra pressure of the International Monetary Fund (IMF) to integrate amendments in the federal budget 2022-23 saying that the changes had been made in larger interest of the country.

Responding to the criticism by the opposition members over the amendments in the Federal Budget 2022-23 in National Assembly, Ayesha Ghous said the amendments were made in such a way that the common man should not be affected.

She said the government had reduced taxes on the people having small incomes while increased tax on the higher income people.

She said that the amendments being integrated in the budget were in line with the previous PTI government’s agreement/commitments made with the IMF, but the past regime had not fulfilled them.

“The IMF makes agreements with the state of Pakistan not with any government or a political party, therefore we have no other option but to act upon the agreement,” she added.

She said it was for the first time in the country that the rich people were taxed heavily and the poor were given maximum relief.

Look at the super tax, she said which is being levied on the rich industrialists.

Similarly, she said the small income segments had been given relief while the tax had been increased for the higher income people.

Meanwhile the National Assembly on Wednesday passed the Finance Bill 2022, giving legal effect to budgetary proposals for the next fiscal year.

It was moved by Minister of State for Finance Aisha Ghaus Pasha.

Having a total outlay of 9502 billion rupees, the budget 2022-23 encompasses measures for sustainable economic growth, industrial and agriculture development and relief for the poor people.

The budget envisages Federal Public Sector Development Programme (PSDP) of 800 billion rupees for the next fiscal year. It has been centered on improvement in sectors such as water resources, transport and communication, energy, higher education, health, science and technology, and balanced regional development.

699 billion rupees have been set aside for targeted subsidies to extend benefit to deprived segments of the society.

The budget of Benazir Income Support Program has been increased to 364 billion rupees. In addition, 12 billion rupees have been allocated for the provision of subsidy on essential commodities through Utility Stores Corporation.

The salaries of government employees have been increased by fifteen percent along with a merger of adhoc allowances.

As regards taxation, the government has levied super tax on affluent class in order to reduce the budget deficit and take the country towards economic sovereignty.

According to the amendments introduced in the finance bill 2022 and approved by the National Assembly today, there will be no tax on those earning less than six hundred thousand rupees.

Those earning between over six hundred thousand rupees and 1.2 million rupees will have to pay tax at the rate of 2.5 percent on the amount exceeding six hundred thousand rupees.

Taking the floor, Foreign Minister Bilawal Bhutto Zardari said the PPP has always led the struggle for democracy, free and fair elections and for the economic rights of the people. He said his party strongly believes in transparent elections. He said the PPP will also secure victory in the second phase of Sindh local government elections to be held in a month’s time.