By Staff Reporter
ISLAMABAD: Minister for Finance Miftah Ismail on Thursday said the government imposed the petroleum levy in the range of Rs5-10 per liter on petroleum to thaw the frozen IMF funding to avoid failing on international obligations.
“Under the IMF programme, the timeframe has been extended from 3 to 4 years while the size of the Extended Fund Facility (EFF) has also been increased from $6 to $7 billion,” said Minister for Finance Miftah Ismail addressing joint news conference along with Minister for Energy Musadiq Malik.
Miftah said the PTI led government had committed with the IMF that it would jack up petroleum levy up to Rs 30 per litre and impose 17 percent GST, but then copped out, causing a loss of Rs230 billion in the outgoing fiscal year.
“If the Imran Khan government had kept its word then it would have had to levy a tax of Rs70 per liter but Shehbaz Sharif regime just imposed a levy of Rs 5 to 10 per liter with effect from July 1, 2022 under the IMF agreement” he added.
He said that the prices of petroleum products in the international market increased so the government imposed a nominal levy to avoid losses. “The Extended Fund Facility (EFF) would be revived. The IMF programme size has jacked up from $6 to $7 billion, while the program period also increased from 3 to 4 years,” the minister said.
The IMF programme, he said, achieved good progress. “The MEFP has been received and prior actions have been accomplished,” he said.
Energy minister Mussadiq Malik said that it was a difficult press conference.
“I want to convey the message of the PM that there were two options including continuation of actions of the last regime that brought us to the brink of bankruptcy and the second was hiking the petroleum prices, while protecting the vulnerable segments,” he added.
He said the Super Tax would be imposed on the biggest companies.
He said that he wanted to give a ray of hope at this difficult time. The small businesses, he said, would be promoted.
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