Jamaat-e-Islami believes the federal government can abolish the petroleum levy by implementing the party’s economic proposals.
The government, said JI vice-emir Liaqat Baloch, should cut wasteful expenditure to potentially saving hundreds of billions of rupees. He was speaking at a press conference at the JI sit-in in Lahore.
Baloch said the party had presented the government with “practical and workable” proposals. The proposals, he added, aimed at reducing the burden of taxes and levies on petroleum products without creating additional pressure on the national exchequer.
“JI’s nationwide protest against the petroleum levy entered its 24th day.”
He said the JI would continue sit-in until the government provided meaningful relief to consumers.
The next round of talks between the JI and government committees is taking place in Islamabad on September 10.
Baloch said the government had requested that the JI suspend its sit-ins after negotiations began. But, he added, the party had rejected the request. “The protest will end automatically once the petroleum levy is withdrawn,” he said.
JI Proposals:
Baloch said excessive taxes and levies had pushed up the cost of petrol and diesel, adversely affecting households, industry, agriculture, trade and small businesses. He put the combined burden of taxes and levies on petroleum products at around Rs130 to Rs148 per litre.
He argued that the government could reduce fuel prices by changing the way locally produced petroleum was treated under the pricing mechanism. Separating domestic production from imported petroleum in determining prices, he claimed, could provide consumers with around 30 percent relief and save approximately Rs120 billion.
The JI leader said the government could also raise refinery utilisation by importing crude oil and using currently idle capacity. He claimed refineries were operating at only around 43 percent of their capacity and that utilising the remaining capacity could save the national exchequer about Rs100 billion.
He said the party had proposed rationalising federal spending on programmes and liabilities that, following the 18th Constitutional Amendment, should largely be handled by the provinces.
According to Baloch, this could generate savings of up to Rs900 billion.
JI’s proposals include reducing the interest rate by two percentage points, which he said could save around Rs100 billion. Government should rationalise cash reserves to save approximately Rs448 billion. He also called for renegotiation or termination of unsustainable agreements with IPPs. And an end to electricity subsidies available to government officials and the ruling elite.
