The manufacturers, industrialists, exporters and traders have urged the government to reconsider and withdraw its decision of increasing gas tariff up to 63 percent and withdraw increase in general sales tax on petroleum products as it would directly affect the end users.
President of Multan Chamber of Commerce & Industry (MCCI) Mian Iqbal Hassan apprehends that the recent increase in gas tariff by 10 percent for commercial user, 22 percent for industrial and power sectors will have a negative impact on exports and prices of locally-made goods will go up drastically.
He also criticised the government move of meagre reduction in oil prices despite sharp reduction in petroleum products' prices in international market during the past few months. Iqbal Hassan said that the hard-pressed people were still buying the daily use commodities on higher prices. In fact the government has given them the gift of increase in General Sales Tax (GST) from 20 percent to 25.5 percent on motor spirit, 17 to 24 percent on HOBC, 20 to 30 percent on kerosene oil, 36.5 to 45 percent on high speed diesel and on light diesel oil from 20 percent to 29.5 percent.
He said that the business and industrial community and general public were deprived of the fruits of slash in international oil prices by not passing on its full benefit. Pakistan was confronted with the challenges of poverty and unemployment and the government could overcome such challenges by attracting investment and promoting business but increasing tariff and not passing on full benefit of oil prices reduction in international market would make things more difficult for investors and the industry.