(MENAFN- Khaleej Times) The government tagged the reduction to an increase in the sales tax on petroleum products by five per cent to 22 per cent.
Islamabad: The Oil and Gas Regulatory Authority (Ogra) revised prices of petroleum products on Wednesday offering consumers considerable relief by cutting down rate of petrol by Rs6.25 and kerosene by Rs11.26 per litre.
The new rates became applicable from January 1 the notification issued in this regard said. Prime Minister Nawaz Sharif announced the price reductions at a news conference here terming it as the new year’s gift to the people hoping it would further bring down prices of consumer goods.
The government tagged the reduction to an increase in the sales tax on petroleum products by five per cent to 22 per cent. The opposition including the Pakistan People’s Party (PPP) the Pakistan Tehreek-i-Insaaf (PTI) and the Muttahida Qaumi Movement (MQM) rejected the increase in sales tax and slammed the government for denying common man the benefit of steep fall in international prices of oil to below $60 a barrel.
The PPP and the MQM members in the National Assembly staged a walkout rejecting the sales tax. Leader of the Opposition in the National Assembly Syed Khurshid Shah led the protest walkout. He said the increase in sales tax is unacceptable because the government has neutralised the reduction in PoL prices by raising the sales tax.
Shah said the PPP did not raise the tax even while oil at international level had gone up to $140 per barrel.
Finance Minister Ishaq Dar said negative impression is going to the people with reference to taxes. The powers to determine the prices of petroleum products rest with Oil and Gas Regulatory Authority (Ogra) rather than the government following the decline in prices in international market. If Ogra does not provide relief to people then it is onerous responsibility of the members of parliament to ask Ogra about it and ascertain the factual position.
Appearing before the media at his chamber in the parliament shortly after addressing the Senate on National Action Plan to fight terrorism Prime Minister Nawaz Sharif made a commitment to pass on the relief to consumers.
“I want to give good news to the nation” he said while announcing the cut in prices. “I would ask provincial governments to make sure that relief is passed on to people.”
Sharif pointed out “The government has given relief of Rs400 billion by reducing petroleum products’ prices since August 31.”
newskhaleejtimes.com
(With inputs from Online)
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