F.P. Report
ISLAMABAD: Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry has called upon the government to immediately withdraw hike in sales tax on some POL products as it would put additional burden on consumers and enhance the cost of doing business in the country. He urged that government should also pass on full benefits of reduced oil prices in international market to the consumers.
Sheikh Amir Waheed said that FBR vide its SRO No.414(1)/2018 issued on 31st March 2018 has further enhanced sales tax on Motor Spirit from 17 percent to 21.5 percent and on High Speed Diesel Oil from 25.5 percent to 27.5 percent which was not justified.
He said that government was already charging Rs.8 per liter petroleum levy on HSD, Rs.10 on petrol, Rs.6 on light diesel oil and Rs.3 on kerosene oil while further increase in sales tax on some POL products would surge transportation cost and increase inflation leading to further dent in business activities.
He emphasized that the government should withdraw hike in sales tax on POL products and pass on full benefits of reduced oil prices in the international market to the people to provide them badly needed relief.
Muhammad Naveed Senior Vice President and Nisar Mirza Vice President ICCI said that OGRA had recommended Rs.5.26 per liter cut in petrol price, but government has reduced petrol by only Rs.2.07 per liter that has deprived the people of real benefit of reduced oil prices in 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 that government should consider further reduction in POL prices and make significant in heavy taxes on these products that would enhance purchasing power of consumers and facilitate the growth of business activities.
On the basis of the prevailing prices in the international market, the Oil and Gas Regulatory Authority had recommended reduction of Rs 5.26 per liter or 6.0 percent in the price of petrol and an increase of Rs 0.65 per liter or 0.7 percent in the price of high speed diesel (HSD). Under the current procedure, oil prices are notified on the last day of every month.
The sales tax on motor spirit has been increased from 17 percent to 21.5 percent from April, 2018, reflecting an increase of 4.5 percent.
The FBR has issued a notification late Saturday night to revise sales tax rates on some petroleum products with effect from 1st April, 2018. From April 1, 2018, High Speed Diesel (HSD) will be subject to 27.5 percent as compared to 25.5 percent in March 2018. Sales tax on HSD has been increased by 2 percent. Sales tax on kerosene would remain at 17 percent during April 2018. Sales tax on light diesel oil has been decreased from 17 percent to 16.5 percent from April 1, 2018.
