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| Increase in prices of kitchen items, transport fares feared |
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Monday, June 15, 2009
Khalid Iqbal
Rawalpindi
All segments of society have bemoaned the apathy of the government in providing any kind of visible relief to the common man in the federal budget 2009-10.
The government’s decision of placing petroleum development levy with carbon surcharge on petroleum products, including compressed natural gas (CNG), has been widely condemned. People feared that it would result in a sharp increase in POL prices in the country from next month.
Rejecting carbon surcharge on CNG, All Pakistan CNG Association Acting Chairman Ghayas Ahmed Piracha said with the new tax they would be forced to increase the rate of 1 kilogram of CNG to Rs60. “How could we run our business in these circumstances? I fear that our industry would be ruined with the imposition of the new tax,” he said. He said that transporters plying vehicles on CNG would be forced to increase their fares and the common man would be affected by it.
Rawalpindi Chamber of Commerce and Industry President Syed Asad Mashadi feared that hundreds of thousands of people could become jobless, as the government has failed to provide any kind of subsidy to the private sector in the budget.
He said that the cost of production was increasing day-by-day and industrialists had started downsizing their staff. “The process of downsizing would pick up pace after the federal budget is passed by the parliament,” he added.
All Pakistan Flour Mills Association Chairman Asim Raza said that there was no subsidy on electricity and gas rates in the budget, which would affect the budget of the common man.
Despite having a bumper wheat crop this year, the government has failed to provide relief to the common man by reducing ‘atta’ price.
Talking to ‘The News,’ Tariq Ahmed Taj, a schoolteacher, said that the government has increased the health budget, but lifesaving drugs were not exempted from tax, which was not a good step by the government.
Farah Gohar, an economist, said that positive economic revival could provide relief to public, but the government technically tried to hide its deficiencies in the game of words in the budget.
She said that by levying carbon surcharge on petroleum products, the government has indirectly given a nod for an increase in prices of items of daily use. “I fear that the prices of all kitchen items, including ‘atta’, ghee, pulses, sugar, rice, fruit, vegetables, would increase from next month,” she added.
Mukhtar Ahmed Awan, a professor of economics, told ‘The News’ that the government is playing with the sentiments of public by reducing taxes on vehicles and mobile phones, which does not have a direct impact on the economy.
“These things are not necessary as compared to ‘atta’ and pulses. If the government wanted to provide relief to public then it should cut down prices of kitchen items and petroleum products and reduce transport fares, which could bring some relief to them.
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