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Friday August 19, 2022

Govt imposed petroleum levy to revive stalled IMF programme: Miftah

Miftah Ismail has said the government imposed the petroleum levy in the range of Rs5 to 10 per litre on POL products for reviving the stalled IMF programme

By Our Correspondent
July 01, 2022
Finance Minister Miftah Ismail. Photo: The News/File
Finance Minister Miftah Ismail. Photo: The News/File

ISLAMABAD: Federal Minister for Finance Miftah Ismail has said the government imposed the petroleum levy in the range of Rs5 to 10 per litre on POL products for reviving the stalled IMF programme. Under the IMF programme, the time-frame was extended from 3 to 4 years while the size of the Extended Fund Facility (EFF) also increased from $6 to $7 billion.

Addressing a joint news conference along with Minister for Energy Mussadiq Malik, Miftah Ismail said that the PTI-led government agreed with the IMF for jacking up the petroleum levy up to Rs30 per liter and then imposed 17 percent GST but then breached the agreement with the IMF for causing a loss of Rs230 billion in the outgoing fiscal year. “If the Imran Khan-led government would have implemented it, then they would have to levy tax of Rs70 per liter but they just imposed levy of Rs5 to 10 per liter with effect from July 1, 2022 under the IMF agreement,” he added.

He said that the prices of POL products in international market increased, so the government imposed just levy to avoid losses. The EFF would be revived. The IMF programme size jacked up from $6 to $7 billion while programme period also increased from 3 to 4 years, the minister said. He said that the FBR exceeded its revised target of Rs6.1 trillion. The FBR issued FASTER refunds of GST and income tax refunds. The DLTL refunds got cleared.

The IMF programme, he said, achieved good progress. The MEFP has been received and prior actions accomplished as the petroleum levy imposed with effect from July 1, 2022. He said that PM Imran Khan breached the agreement on petroleum levy but now the IMF programme was revived.

Mussadiq Malik said the PM ordered to constitute a commission to ascertain responsibility who granted automatic working to Ogra. “I want to convey the message of PM that there were two options, including continuation of actions of last regime that brought us on the brink of bankruptcy, and the second option would be hiking prices but to protect the vulnerable segments,” he added.

He said super tax would be imposed on biggest companies. The property tax will be imposed on rich class. We have come out of the default mode. He said that he wanted to give a ray of hope at this difficult time. The small business, he said, would be promoted. CPEC will be revived and closed down industries will be relocated into Pakistan from China. All these factories of China will be incentivised. This difficult time will be over. Employment will be generated and price hike will be controlled, he added.

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