JI, govt agree on outline for levy relief

ISLAMABAD:

The JI on Tuesday said it had agreed with the government on the broad outlines of an agreement to extend petroleum-related relief to consumers, but warned it could resume its long march if the negotiations failed to produce a concrete outcome on its demand for abolishing the petroleum levy.

The government and JI held a 10th round of talks on the petroleum levy, with both sides agreeing on the need to provide relief to consumers, particularly low-income households, while discussions on a phased reduction of the levy also came under discussion.

Speaking at a press conference after the 10th round of talks with the government committee, JI deputy chief Liaquat Baloch said the two sides had agreed on the need to expand the existing relief measures, while the government would consult the IMF on continuing the relief.

He said providing relief to the public remained the foremost concern during the negotiations and that the government had acknowledged difficulties in the supply of petroleum products due to the global situation.

Baloch said JI had proposed including vehicles with engines of up to 1,000cc and the agricultural sector in the relief scheme. He said the government had also acknowledged that JI's demand for abolishing the petroleum levy was legitimate.

"Our demand is that the levy should be abolished immediately and the public should be given clear relief," he said, criticising the government for being unwilling to cut its luxuries and putting the burden of the Federal Board of Revenue's (FBR) failures on consumers.

Baloch said the two sides had agreed on the broad outlines of a draft agreement during Tuesday's meeting, with the government expected to share further details in the coming days.

He said that the government had informed the JI delegation that it had started working on a plan to address its revenue requirements and would share a framework for gradually reducing the levy after consultations with the IMF.

He said another meeting was expected on Wednesday or Thursday, while the final decision on the proposed agreement would be taken during a possible meeting between Prime Minister Shehbaz Sharif and JI chief Hafiz Naeemur Rehman.

Following that meeting, the party would decide whether to proceed with its planned long march, he added. The JI leader claimed that the party's protest had helped halt increases in petroleum prices and secured relief of Rs146 per litre on diesel and Rs120 per litre on petrol. "The process has now reached the stage of final decisions," he said.

He said JI remained committed to peaceful political engagement but would withdraw from the negotiations if it found that the government was unwilling to move forward.

"Our only goal is that the people should get relief, that there should be a reduction in production costs, that the economy should run and that people should get employment," he said.