PM announces relief for power users

Shehbaz also lifts fixed tax imposed on traders in budget

ISLAMABAD:

Prime Minister Shehbaz Sharif on Tuesday announced waiving off fuel  charges adjustment (FCA) on electricity bills for millions of consumers.

He also lifted the fixed tax imposed on traders in the budget.

In a video address from Qatar, where he is on a two-day trip, PM Shehbaz said the FCA – linked to international fuel prices – witnessed an exorbitant rise due to which additional charges were imposed on the electricity bills.

“I took notice of this [inflated electricity bills] and on the instructions of [PML-N supremo] Mian Nawaz Sharif… we have decided to waive additional charges from the electricity bills of 17 million consumers out of a total of 30 million,” the premier explained.

PM Shehbaz said Power Minister Khurram Dastagir would hold a news conference on the issue on Wednesday as he had chalked out the mechanism behind the announcement and how it would work.

The prime minister explained that the FCA exemption would also apply to tube well users, who he said were around 300,000.

"I hope from these measures there will be contentment among the people and they would realise that the government is trying to improve their situation,” he added.

Read Govt to scrap fixed tax, waive fuel adjustment charges on power bills

The PML-N tweeted that the relief would apply to those whose consumption in terms of electricity units was low.

Interior Minister Rana Sanaullah tweeted that the move would alleviate the miseries of more than 17 million inflation-stricken consumers and was part of necessary measures to curb inflation.

While admitting that the imposed fixed tax was a fault, the premier in his video address claimed that neither he wanted, nor he directed the finance ministry to impose it on the traders.

“The fixed tax was imposed against our vision… I have formed a committee to fix responsibility for this,” he added.

“This [waiver] will create a gap of Rs42 billion tax revenue but we are not going to take any step that will create difficulties for our small traders,” he said. “Traders should not worry about this tax now. It’s been withdrawn,” he elaborated.

The premier further said the country’s economy was on the verge of a default, but now due to the efforts of coalition partners, the government had averted this danger.

He also cited hurdles in taking measures related to the economy saying the government had to consult with the International Monetary Fund (IMF) before making any decision.

On Monday, President Arif Alvi had promulgated a relief-loaded ordinance to appease traders, transporters and the Pakistani diplomats posted abroad but smokers were taxed to pay for the concessions given to these classes of the society.

The president had signed the Tax Laws (Second Amendment) Ordinance, 2022 – a week before the IMF is set to take Pakistan’s request for completion of the two pending reviews for the release of the $1.2 billion tranche of the loan programme.