Rs11tr tax exemptions granted in five years

Government plans LPG relief policy, NA told

ISLAMABAD:

The National Assembly was informed on Monday that tax exemptions worth Rs11.047 trillion were granted over the last five years, while the government was preparing a new policy to provide relief to low-income households facing high liquefied petroleum gas (LPG) prices.

According to the Finance Ministry, the exemptions were granted between fiscal years 2020-21 and 2024-25. They included Rs580 billion in income tax, Rs1.274 trillion in sales tax and Rs499 billion in customs duty, while the overall figure covered tax exemptions across the period.

Responding to a Calling Attention Notice on rising LPG prices, Petroleum Minister Ali Pervaiz Malik said that Prime Minister Shehbaz Sharif had held two to three meetings to address the LPG price issue.

He said the government was working on a comprehensive policy to improve supplies and provide relief to deserving consumers, which would be finalised within one to two days.

"The prime minister is fully aware of the difficulties faced by the consumers," Malik said, adding that progress would be visible soon. He said the proposed policy would seek to ensure fair competition in the market while providing subsidised fuel to vulnerable households.

The minister said the Oil and Gas Regulatory Authority's (OGRA) notified rate of Rs280 applied to locally produced LPG, while no policy was currently in place for imported supplies. He added that the price of locally produced LPG was also linked to the international contract price set by Saudi Aramco.

The international benchmark had risen to $705 per tonne, contributing to changes in notified prices, Malik said. The proposed policy would consider supply difficulties through land borders and explore arrangements to import alternative supplies from Oman and Saudi Arabia.

He said the government was examining additional costs associated with LPG supplies, as no adequate mechanism was available to cover them. Since locally produced and imported LPG could not be treated differently in the market, enforcement action by OGRA could create further complications, he added.

Malik said that Pakistan's gas supply had been affected by the suspension of around 900 million cubic feet per day of gas supplies from Qatar due to the war, forcing the government to ration available supplies. He acknowledged that demand for alternative fuels would increase as winter approached.

The government also presented details of youth financing and training initiatives. According to the Planning Ministry, 518,000 young people had received loans under the Prime Minister's Youth Business and Agriculture Loan Programme, while a target had been set to train 230,000 young people.

The Higher Education Commission (HEC) informed the house that undergraduate degree programmes required internships or field experience worth at least three credit hours. The commission had also revised the national curricula for 47 disciplines.