Hefty taxes on petroleum products disaster for economy: BMP

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LAHORE: The Businessmen Panel has said that Rs 40 tax per liter on diesel and Rs 34 tax per liter on petrol is a disaster for the economy and put a heavy burden on the people.

On Saturady,  BMP Secretary General (Punjab), Mian Usman Zulfiqar of Pakistan said while addressing a meeting that  Pakistan’s annual inflation climbed to 4.4 per cent in January from 3.7pc in the same month last year mainly due to hike in petroleum prices. He said these heavy taxes on petroleum products is shocking and determined the seriousness of the finance ministry for the welfare of the people.

“I think officials of finance ministry doesn’t know the cost impact on the farmers and businessmen who already faced high cost of business and inputs and these figures will put further disappointing them”, he added .

Usman said high oil prices mean that Pakistan’s export competitiveness goes down and our exports already falling, this is something the country can ill afford. It also raises questions about the decision to depreciate the Pakistani rupee.

The logic of depreciation was to make the export sector more competitive but in an import-dependent economy, depreciation is likely to increase domestic prices by a similar amount.

The petrol price had to go up simply because the value of Pakistani currency has gone down and petrol is an imported good. The only way to control its price is to reduce the tax charged to consumers. —Online

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