LCCI rejects govt's move to impose additional GST

Lasbela Chamber of Commerce and Industry (LCCI) has rejected the government's move to impose an additional five per cent general sales tax (GST) on petroleum prices. President LCCI, Yakoob H Karim said in a statement that the government instead of passing on the full benefit of constantly declining global oil prices to the consumers, it has further trying to over-burden the consumers. He termed the government's move a cruel act and sheer injustice to the industry and the general masses.

Yakoob said that whenever oil prices in world market went up, government lost no time in passing on its whole impact to the consumers by raising electricity tariffs, but now when the oil prices have tumbled to about than 50 per cent, it was unfortunate that government was hesitant to pass on its full benefit to the people. He said that just reducing Rs5 or rs6 per liter is a mockery of the expectations of poor people of Pakistan

He has resented the government move to reportedly withhold Re0.60 per unit out of Rs.2.97 per unit reduction in electricity tariffs approved by NEPRA for the consumers of 9 distribution companies and called upon it to ensure full implementation of 20 per cent reduction in power tariffs in order to provide direly needed relief to business community and the general masses.

He said the existing power tariff in Pakistan was around Rs14 while with the addition of 17 percent GST and 3.5 percent excise duty, it goes up to Rs16.95, which was highest in the region. He said in India and Bangladesh, the tariff for the same unit is Rs.7.36 and Rs.5.47 respectively, while in the US, it was equal to Rs8.59 and he was wondered how Pakistani exporters could compete with regional competitors with such huge disadvantage in power tariffs.