*ISLAMABAD: The caretaker government has increased the petrol prices onSunday by Rs14/liter which will result in almost Rs100 billion profit togovernment in the month of July 2018.*
In the past, price hike for petrol and related products was usually aroundRs2 to Rs5. However, interim government’s decision to rise petrol prices byRs5 to Rs14 per liter is a threat to people due to economic burden andinstability.
It was expected that the caretaker government will maintain the prices inorder to provide reprieve to the economy.
It is observed that interim government has deliberately connected the dotsin order to attain Rs100 billion profit from public in July 2018, which arealso in terms of assorted taxes including Inland Freight EqualizationMargin (IFEM), companies, and trader margins etc.
The amount is allocated under different taxes and schemes, such as aroundRs42 billion under the head General Sales Tax (GST), Rs17 billion underpetroleum tariff, Rs8 billion as of customs duty, Rs5 billion under theumbrella of estimated ‘duty’ from the masses. Furthermore, Rs20 billion areto be collected in order to gave advantage to oil marketing companies(OMCs).
According to sources, “The Finance Ministry has already communicated to theOil Marketing Companies (OMCs) regarding the hike in POL prices on 25thJune while the ministry rejected a proposal to pass on a 50% hike to masseson late Saturday (30 June).”
The Supreme Court (SC) plays a vital role here, it is likely to give reliefto the public through reducing taxes imposed on POL prices. Still undertrial, it is expected that the SC will implement enormous cuts in taxes.