Traders flay increase in GST on POL products

LAHORE
The All Pakistan Anjuman-e-Tajiran has criticised the government move of increasing General Sales Tax (GST) on petroleum products from 17 percent to 22 percent cutting relief for consumers of an estimated Rs5 billion.
In a statement issued here the traders union warned the government that it approached the court against this decision of the government which refused to approve another major reduction of up to Rs17 in petroleum prices on recommendations of Oil and Gas Regulatory Authority (OGRA).
Oil prices at international level have dropped by over 45 percent but the government has not passed on this benefit to the consumers as just 20 percent cut has been announced so far. The traders stated, ‘when the rates go upward government makes OGRA responsible for this hike and refuse to interfere but now the authorities are interfering and have become hurdle to facilitate public.’ It seems that government was reducing the rate of oil due to pressure of PTI sit-ins as the government has now imposed additional levy on petroleum instead of giving full benefit of international oil price cut as the sit-ins are no more continuing.
The government, under the article 77 and 162 of the Constitution, cannot impose tax without the approval of parliament but it is imposing new taxes through SROs unconstitutionally and the recent Supreme Court’s decision has stopped this illegal practice of the government in the past.
They urged the government to invest more in the oil exploration projects as new discoveries would do a great help in tackling the oil price issue.
Oil prices were going downward in the international market and government should not only pass on this benefit to the people, but it should also cut the number of taxes on petroleum products as the fuel is the engine of growth. If the fuel will be heavily taxed, the entire economy will suffer.