Businessmen condemn hike in petroleum prices

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI)’s Businessmen Panel (BMP) has condemned the hike in the petroleum products prices, a statement said on Saturday.

They demanded the government to reduce the tax ratio on oil products to support the trade and industry, as the government has raised the petroleum levy, along with increasing the general sales tax (GST) on petroleum products under the commitment with the International Monetary Fund.

BMP chairman Mian Anjum Nisar said that, to improve the cash flow of businesses at this crucial time, the government must facilitate the industry through reduction in tax ratio on all items including oil products and also lower the markup rate.

He said that at a time when GDP ratio was very nominal amidst high cost of doing business, the industry needs maximum support and relief.

Nisar expressed dismay over the latest increase in the petroleum levy, noting that the petroleum levy rate on petrol is raised to Rs17.62/litre from Rs13.62/litre and the levy on high speed diesel (HSD) is also revised from Rs13.14/litre to Rs17.14/litre while superior kerosene oil (SKO) saw an increase of Rs9.86/litre in levy.

He lamented that the GST on petroleum products has been increased to 4.77 per cent from 1.63 per cent on petrol, an increase to 9.08 per cent from 7.37 per cent on HSD, while the sales tax on SKO and LDO were also increased.

BMP chairman urged that business-friendly policies should be adopted as other neighbouring countries of the region are providing to the industries, adding that sizeable cut in oil rates would certainly bring down the cost of doing business and our products would get their due share in the global market.

He called upon the government to address the key issues of trade and industry, facilitate economic growth, along with improving tax revenue of the government.

He said that the impact of Covid-19 has badly affected the business and industrial sector, stressing the government to bring down GST in order to ease the difficulties of businesses.

The BMP chairman called for uninterrupted and low cost gas supply to the industrial sector, urging the government to up-grade transmission and distribution system to ensure continuous and smooth supply of electricity and gas.

Gas and electricity are basic ingredients for the industrial sector and are a must to keep the wheel of industry moving, noting that the growth of local industry is a barometer of the economy.

FPCCI former chief and BMP chairman said that the high speed diesel is used mostly in the transport and agriculture sectors. Therefore, any increase in its price will lead to inflationary impact.

Kerosene oil price has also gone up, which is used in remote areas where liquefied petroleum gas is not available for cooking purposes. Any increase in its price will have an impact on the life of the poor. The price of light diesel oil has also been hiked, which is used in industries.

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