Punjab demands due share in taxes

LAHORE: The federal government has been asked to give Punjab its due share in taxes on petroleum and other goods that are being consumed in the province, a minister said on Tuesday.

The federal government in April this year announced that it had decided to use petroleum levy as a tool to earn Rs480 billion by imposing an inflationary Rs30/litre levy on all petroleum products. Analysts say by increasing the rate of the tax, the government will not only generate the aforementioned amount in extra revenues, but also address the issue of sharing taxes with the provinces.

Being an ‘other tax’, the petroleum levy is not a part of the basket of taxes that federation and provinces share under the 7th National Finance Commission (NFC) Award.

“We are doing what we can to resolve the issues of the businessmen of Punjab as they are backbone of the economy” Syed Zia Haider Rizvi, Caretaker Minister for Finance Punjab, said speaking at Lahore Chamber of Commerce and Industry (LCCI).

“The caretaker government of Punjab wants to develop a roadmap for the upcoming government.”

Rizvi, who was leading a group of caretaker cabinet members, said trade and industry were the major areas of focus for the Punjab government. “A mechanism has been evolved to run the affairs smoothly,” he said.

Malik Tahir Javaid, the president LCCI, termed the visit of Punjab caretaker cabinet to the chamber as a historic moment and best example of the public-private partnership.