November 28, 2021

Levy on petrol to be increased by Rs 30: Shaukat Tarin

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Levy on petrol to be increased by Rs 30: Shaukat Tarin

ISLAMABAD Nov 22,2021

Advisor to Prime Minister on Finance, Shaukat Tarin announced an increase of Rs 4 per month in petroleum levy.

In a press conference along with Federal Minister for Energy Hamad Azhar, Shaukat Tarin said that the petroleum development levy has to be increased to Rs 30, so we will increase it by Rs 4 per month.

IMF called for continued tax reforms 

“Negotiations have been arranged with the International Monetary Fund (IMF). In these negotiations, we have stood on our grounds. The International Monetary Fund (IMF) will provide a loan of one billion dollars,” he said.

Adviser to the Prime Minister on Finance Affairs further said that the staff agreement with the IMF was successfully completed and the IMF has called for continued tax reforms. 

Electricity prices will go up in few months, Hamad Azhar

He said the IMF said further improvements were needed in tax reform, improving the tax system, stabilizing spending and improving fiscal discipline.

Shaukat Tarin also said that I had said that raising tariffs is not the solution to the problem, if prices are increased then pressure on the poor will increase. 

“In the negotiations with the IMF, we have saved some sectors, including agriculture, we have to improve tax laws and facilitate business,” he said.

Adviser to the Prime Minister said that the agreement with the IMF to increase the price of electricity had been reached earlier and the amendment regarding SBP was called for in March.

Why SBP Act amended?

 “We took 500 million dollars, it was difficult to back out of the agreement, we have to amend the SBP Act, we have already agreed to give it autonomy,” he said.

Shaukat Tarin said that the IMF had demanded a tax of Rs 700 billion, GST exemption is to be removed, petroleum levy was asked to be Rs 10 billion, they will not be able to do so. 

He said that recovery in the energy sector has improved, adding that tremendous work has been done in the energy sector.The Adviser on Finance Affairs further said that the International Financial Institutions (IFIs) appreciated Pakistan’s economic growth and provided details of expenditure incurred during the Corona epidemic.

He said that it was necessary to give autonomy to the SBP, monetary policy should be independent, the governor and finance minister would consult on important issues, amend the SBP Act and submit the Auditor General’s report on the Corona package.

 Shaukat Tarin said that the Asian Bank and the World Bank also give us resources, the transparency of the state-owned enterprise has to be increased.

He said that reforms have been introduced to clarify the duties of SBP.

Hiding behind global inflation