PTI govt mulls options to control inflation

Reduction in taxes on imports under consideration

ISLAMABAD: The federal government is considering different options to control the rising inflation, including lowering of taxes on imports to improve commodity supplies to the markets, as Prime Minister Imran Khan seeks to reduce prices of essential items to ease burden on the masses.

Numerous meetings have taken place at the finance ministry, the planning ministry and the Prime Minister House during the last week. At least three meetings took place in the finance ministry in the last 24 hours – two of which were attended by the former PTI secretary general Jahangir Tareen.

In the Q Block –the seat of finance ministry –the National Price Monitoring Committee met with Finance Secretary Naveed Kamran Baloch in the chair. The adviser to prime minister on finance chaired a separate meeting with all the stakeholders. Planning Minister Asad Umar chaired another meeting on the issue of rising prices on Friday.

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Prices of essential items are increasing but it must be remembered that the function of price control falls under the domain of the provinces, Finance Secretary Baloch stated. “They [provinces] must accept this responsibility and make efforts to address the problem,” he added.

He went on to say that the local governments should also be prepared to take additional measures during the holy month of Ramazan. “If any help is required from the Centre, the federal government is ready to facilitate.”

The measures under consideration to lower the prices, include reduction in taxes at the import stage, such as withholding taxes and sales tax. Another option is to cut the sales tax on essential goods at the sales stage.

The prime minister is particularly interested in reducing the burden of price hike on the common man, Baloch said. He stressed the need for action against hoarding and profiteering. Baloch warned that those who failed to take appropriate action to control prices would be held accountable.

Last week, Asad Umar also chaired a review meeting on controlling food inflation. Umar directed for strengthening the monitoring system of 18 essential commodities, including wheat, sugar, flour, edible ghee/oil, potatoes, onions and pulses, in all the provinces.