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ISLAMABAD: Minister for Planning, Development and Special Initiatives Asad Umar has said the government was charging only 16.4% taxes on petrol which was around 33% less than during Pakistan Muslim League (PML-N) government when the tax rate was as high as 52%.
“The current Petroleum Development Levy (PDL) is Rs 5.62 and sales tax is Rs 11.76 and total tax is Rs 17.38 per litre of petrol,” the minister said in a tweet.
He said the base price of one litre petrol was Rs 105.92 and the total price was Rs 123.3, hence the taxation rate per liter was 16.4%, “which is less by one third of the time of Pakistan Muslim League (N) government when tax was 52%”.
Asad Umar was responding to a tweet by the Pakistan People’s Party leader Murtaza Wahab Siddiqui who referred Asad Umar’s tweet written in February 2016 when he had said “petrol price without taxes is Rs.46.8 and taxes (PDL+GST) on it are Rs.24.5 so the total tax on petrol is now equal to 52%”.
Addressing the Planning Minister in his tweet, Murtaza Wahab said “Can u please do the same mathematics now?” After presenting the details of taxation on petrol, the minister asked Wahab “anything else do you want to ask?”
Hazir janab. The current pdl is 5.62 and sales tax is 11.76. Total tax 17.38. Base price 105.92. Total price 123.3. Taxation rate 16.4%. Which is less than one third of that time of pml n govt when tax was 52%. Aur koi khidmat janab? https://t.co/czvNLL0mc6
— Asad Umar (@Asad_Umar) September 16, 2021
Petrol prices still lowest in the region
A day earlier, Minister for Information and Broadcasting Fawad Chauhdry has defended the hike in petroleum prices, saying oil prices in Pakistan are still the lowest in the region.
In a tweets, the information minister said the country imports oil, hence, prices will rise when there is an increase in the world market. This is the principle for the rest of the imports.
He said the real achievement is that the income of 75% of our population has also increased significantly. He added that fortunately Pakistan’s purchasing power is better than that of India.
While acknowledging the difficulties of the salaried class, he said 60% of the population is engaged with the agriculture sector which has received an additional income of Rs1,100 billion rupees. He said the income of millions of people associated with construction and industries has also increased.
The government had announced Rs5 increase in the price of petrol, increasing the historic price of Rs123.30 per litre. According to a notification by the Finance Division, the price was increased due to the fluctuations in petroleum prices in the international market and exchange rate variation.
