ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said unjustified taxes on fuel continue to hurt masses and economy therefore it should be reduced.
“High prices of fuel have become an incentive for smugglers who are thriving on low prices of oil and gas in Iran and Afghanistan,” said PEW President Dr Murtaza Mughal. “Border arrangements have failed to deter the smugglers as 15 to 20 percent petrol consumed in Pakistan is said to be smuggled from neighbouring countries.”
He said that smuggling of LPG continues to increase unabated, grabbing around 30 percent of the local market, and subsequently putting survival of local producers at stake. He said that fifth upward revision in the prices of fuel in the last three months proves the incompetence of export industries and revenue collectors.
“The situation has forced government to impose additional tax on bank transactions which has resulted in non-compliance, hitting businesses, banking and revenues,” he added.
He said that nobility should be brought into the tax net to finance ongoing war on terror. “Taxing aristocracy has become imperative to improve relations between government and taxpayers. Fund the war which is tied to our survival and break the begging bowl as masses reeling under problems are unable sacrifice more to keep rich happy,” he concluded.
