Cabinet okays 'mini budget' as President refuses to Promulgate ordinanCe

g finance Bill proviDes for 1pc increase in Gst, aDDitional taxes UnDer imf’s nintH review

islamabad profit report the president appreciated the efforts of the government in negotiating an agreement with the imf and assured that the state of pakistan would stand by the commitments made by the government with the imf. the minister said the government wanted to raise additional revenue through taxes by promulgating an ordinance. the press release issued about the president House said that, “the president advised that it would be more appropriate to take parliament into confidence on this important subject, and that a session be called immediately so that the bill is enacted without delay.”

PresiDentDr arif alvi on tuesday advised finance minister ishaq Dar to take the parliament into confidence and call immediate session to discuss the issue of raising additional revenue through taxes.

Dar apprised president alvi about the progress in talks with the international monetary fund (imf) and that all modalities have been agreed upon, such as raising rs 170 billion taxes in the next four months.

Cabinet aPPRoves 'FinanCe suPPlementaRy bill 2023' as moRe taxes on luxuRy items with 1% inCRease in Gst: the federal cabinet on tuesday ap- proved the finance supplementary Bill 2023 providing for a 1% increase in general sales tax and additional taxes on luxury items as part of the reforms related to the international monetary fund’s ninth review. the supplementary bill was passed in a cabinet meeting chaired by prime minister shehbaz sharif who gave the directives not to tax any daily use items which could affect the poor or middle class. the prime minister said the government was making maximum efforts to put the minimum possible burden on the poor people, however, he called for taking necessary measures to tax luxury goods. the supplementary finance bill would now be tabled before the parliament on wednesday as the president has already summoned the sessions of the national assembly and senate. the prime minister said that an austerity policy would be adopted at the government level which would soon be formally announced as the economic difficulties could only be overcome while limiting ourselves within our resources.

During the briefing given to the prime minister, it was told that under the reforms, the luxury items would be taxed.

He said all of the cabinet members and the government officers would be bound to ad- g earlier, Dr alvi aDviseD Dar to take parliament into confiDence over taxes raise here to the austerity package as it was imperative to steer the country out of economic challenges. He said the 220 million of pakistan were bearing the brunt of the incompetence and negligence of the previous government. the federal cabinet approved the renaming of the turkiye earthquake victims fund as turkiye and syria earthquake victims fund as the prime minister urged the people to donate wholeheartedly to this fund. the prime minister expressed condolences over the destruction caused by the unprecedented earthquake in turkiye and syria. He also apprised the cabinet members of his telephonic interaction with turkish president recep tayyip erdogan in which he assured pakistan’s all-out support to the quake-hit people. He said the relief goods including blankets, warm clothes and others had been dispatched to turkiye and syria, as more goods were also being sent there. the pakistan air force, rescue workers, nGos and philanthropists were also taking part in the relief activities, he added. the cabinet members also offered fateha for the late

“we assumed the power in difficult circumstances and sacrificed our politics for sake of the state. the previous government betrayed the people through its tall claims of simplicity and austerity,” he remarked.

Petrol, diesel price may go up by Rs32/litre effective from next fortnight

islamabad AhmAd AhmAdAni vehicle owners should gear up to be hit with another jolt as the government is likely to jack up petrol prices by up to 12.8% per litre for the second half of february 2023. according to sources, the ex-depot per litre price of petrol is calculated to go up by rs 32.07 (or 12.8%), High speed Diesel (HsD) price is to witness a rise of rs 32.84/litre (or 12.5%), while kerosene oil price is estimated to be hiked by rs 28.05/litre (or 14.8%) and light diesel oil (lDo) price may witness a hike of rs 9.90/litre (or 5.3%) during the second half of february this year. “likely new prices are based on current government taxes and estimated pso incidentals,” said sources.

the estimated UsD/rs adjustment applies rs 15/litre for both products (petrol & HsD) while it is assumed that petroleum levy (pl) on the HsD will rise to rs 50 per litre, they added. at present, petrol is available at rs 249.80/litre, HsD at rs 295/litre, kerosene oil at rs 189.83/litre and lDo at rs 187/litre. However, sources further said that if the hike is approved then the new price of petrol will stand at rs 281.87/litre, HsD at rs 295.64/litre, kerosene oil at rs 217.88/litre and lDo at rs 196.90/litre during the last fifteen days of february 2023.

HsD is widely used in transport and agriculture sectors. therefore, any increase in its price will be a blow to consumers in the form of rising inflation. similarly, petrol is used by motorbikes and cars and is an alternative to compressed natural Gas (cnG). and gas is already not available for cnG stations to feed transport due to the issue of availability in the winter months. furthermore, kerosene oil is used in remote areas where lpG is not available for cooking purposes; the pakistan army is a key user of it in northern parts of pakistan. it is also learnt from sources that the ex-refinery price for the second half of february 2023, of petroleum products is calculated to go up by 21.4%. the ex-refinery price of petrol is calculated to go up by 21.4% from rs 177.40/litre to rs 215/litre, HsD price from rs 221.36/litre to rs 240/litre (8.8pc), kerosene oil from rs 182.13/litre to rs 210.18/litre (15.4%) and ex-refinery price of lDo is also estimated to go up from rs 153.99/litre to rs 163.89/litre (6.4%). it is important to remember that the common man is already burdened and this hike in the prices of petroleum products will add much more to their misery. mother of advisor to prime minister ahad cheema. the federal cabinet endorsed the economic coordi- nation committee’s decisions it had taken in its respective meetings held on february 10 and 13, 2023. it also endorsed the decisions of the cabinet committee on legislative cases taken in its meeting held on february 9, 2023.