Federal Information Minister Pervaiz Rashid. PHOTO: APP
While addressing the media in Islamabad on Sunday, the information minister justified an increase in sales tax by saying that when the petrol price was Rs107.97 per litre, consumers had to pay Rs18.36 of tax per litre.
“…now the petrol price is Rs70.29 per litre, and the consumers have to pay Rs19.32, just 96 paisas more than previous figure of sales tax.”
Rashid argued that the consumers saved Rs37.68 per litre, and an increase of 96 paisas in sales tax is nothing.
He said the government used to get Rs68 billion in terms of revenue collection from petroleum products, which has now been reduced to Rs28 billion.
“The government is bearing a loss of Rs40 billion by reducing the petroleum prices on account of revenue collection,” he said.
Economic indicators improving
The information minister while highlighting the country’s economic indicators, said that the Federal Board of Revenue has increased its revenue by 12.7 per cent; remittances have been increased by 15.26 per cent whereas there has also been a rise in foreign investment by 19 per cent.
He added that inflation had fallen by half, while foreign reserves stood at $15 billion now.
2015 will be the year of mega projects
The federal minister has said that 2015 will be the year of launching mega projects in the country, vowing to initiate its plans next month.
The Pakistan Economic Corridor, energy-related projects, and dams for hydroelectric electricity will soon be inaugurated, he added.
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Low fuel prices must translate to a lower cost of living.......and that has not happened. The rich are benefiting while the poor struggle.
@Mubeen "two countries comparable" "indian consumers don't have more money in their pocket like you say they do". Yes they do. India's per capita income $1500 pakistam $1300.
People don't eat or drink petrol Mr. Rasheed, the effect of its lowered prices would never be trickled down to masses not even if you get three more terms in office!!!!!
What a ludicrous statement. If the tax revenue would have gone down so would have the savings gone up since the price of crude came down. If the country was to spend less it would stand to reason that the country would need less. I have never seen anyone except our politicians in the govt, blatantly and without shame justifying fleecing money hard earned by their masses for the govts inefficiency and ineptitude.
This is the information age and it isn't that hard to find out the prices of petrol in our neighbouring countries. Perhaps TE can do a comparison so that it's no longer just a claim by the minister but independently confirmed fact?
@Viking Star: You are wrong. The petrol price in India varies widely according to region. There is also the small matter of exchange rate differences. 1 Indian Rupee is worth much more than 1 Pakistani Rupee.
The prices are in the range of INR 53 at one extreme to INR 77 at the other. This comes to PKR 86 - 126. So the prices are much higher than in Pakistan.
The overall cost of living and per capita incomes of the two countries are comparable. Indian consumers don't have more money in their pockets like you say they do. What they do have is a good public transport system.
Except that there is no money left to buy Petrol. The Feudal, Military and Mullah drank whatever was leftover.
Yes Pakistan may be having lowest prices of POL but it has highest number of looters and plunderers of Public money. Shame for us as a nation who call itself the Icon of muslims and then afford the likes of Nawaz and Zardari's and others. But there is always ligh at the end of tunnel and we only pray to Allah the almighty to make those who are sucking blood of this nation beg for their lives. May Allah protect Pakistan
Pakistan has also lowest standard of living in the region. Pakistan is the only country where poor pay tax on all household items even water. It is only country in the region whose parliamentarians don't pay tax because they are beggar. I think its enough from my side.. you can think rest for yourselves..
Does this man not understand the concept of percentages? I see no reason for sales tax on petrol to rise from 17% to 27%. At this rate of sales tax, if oil prices were go to jump up to Rs107.97, we would pay Rs29.5 per litre in taxes.
This buffoon's salary should be cut by half with the amount of tax he pays (if he pays any) staying the same. Maybe then he'll realize how this works..
Good job PMLn. This will help our ecporters compete.
Good job PMLn
Are the masses so stupid? The reduction in petrol prices have nothing to do with PML-N. On the contrary, the raise in taxes does!
Bunch of Liars. In India the CNG price is 43/kg and Petrol Rs 67/litre. Moreover the Indians have much more in their pockets to spend. Nobody there prefers using CNG (only public buses and rickshaws). Whereas in Pakistan majority of vehicles run on CNG because people here are usuallyhand to mouth.Thanks to 'so called' democraZy of Zardaris and Shatifs. They are making Pakistan and Pakistanis worst than just beggars.
if it even exist, no one is going to believe pervaz rashid sb.