Govt asked to cut taxes on POL products: PEW
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Masses should get benefit of reduced oil prices
The Pakistan Economy Watch (PEW) on Sunday asked the government to cut direct and indirect taxes on oil and gas and give benefit of reduced oil prices to masses.
Last year federal government collected 912 billion rupees as taxes while the collection of provincial governments is not included in it.
Government collections will surpass mark of trillion rupees as taxes on some petroleum products have been increased, said Dr. Murtaza Mughal, President PEW.
In a statement issued here today, he said that overreliance on indirect taxes amounts to admission of the failure of FBR by authorities.
He said that this policy in widening gulf between rich and poor therefore it should be altered at earliest in the national interests.
Murtaza Mughal said that last year government earned Rs 149 billion under the head of petroleum levy which was Rs 131 billion a year before. Similarly Rs 80 billion were earned as Gas Infrastructure Development Cess (GIDC) which is an illegal tax. GIDC was imposed to import gas from Iran which was never materialised, he added.
A year before government collected Rs57 billion under GIDC which is opposed by the industrial sector but to no avail, he said adding that the income under the head of natural Gas developmental Surcharge has been increased by seven billion rupees to Rs33 billion.
The income by imposing indirect taxes on oil and gas was recorded at Rs582 billion while this sector contributed over 42 percent of the total local sales tax collection.
Government should improve tax administration as dysfunctional tax system is damaging country and masses, he demanded.
