Govt, JI Agree to Form Committees to Recommend Petroleum Levy Cut

LAHORE: The federal government and Jamaat-i-Islami Pakistan (JI) on Thursday agreed to form committees to recommend measures for reducing the petroleum levy and providing relief to the public.

JI Emir Hafiz Naeemur Rehman, Planning Minister Ahsan Iqbal and Prime Minister’s Adviser Rana Sanaullah announced the decision at a press conference in Lahore.

Ahsan Iqbal said a government delegation had met JI leaders in Lahore. He said the government would form an expert committee and had asked JI to form a similar committee to discuss practical ways to reduce the petroleum levy.

The government currently collects Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

“The government will happily act upon recommendations put forward by these committees,” Iqbal said, adding that both sides agreed that relief should be provided to the public.

“We requested them [JI] to form a team, and then we will negotiate on practical recommendations for relief,” he said.

Iqbal said the government would also present its position and take action on the recommendations made by the committees.

“Pakistan’s interest is a priority,” Iqbal said, adding that the government would not allow any foreign element to exploit internal instability. “We have to work together for internal peace and stability.”

The minister said JI had assured the government that it would not make any demand against the country’s interests.

Speaking at the press conference, Hafiz Naeem said JI and the government had discussed the petroleum levy and other issues during a meeting earlier in the day.

He said Thursday was the 19th day of JI sit-ins against the petroleum levy at more than 20 locations across the country.

“There is no personal agenda behind the sit-ins; it is based on issues faced by the public on a daily basis, along with other major problems,” he said.

Rehman said ordinary citizens were carrying a heavy tax burden on petroleum products. “A common bike rider, whose income is non-taxable, is paying 35pc in taxes on every litre of petrol,” he said.

He said JI had agreed with the government to form an expert committee headed by Liaquat Baloch. The committee will include Naveed Ali Baig, Ziaddun Ansari, Nasrullah Randhawa and Farasat Shah.

“Primarily, we think that the petroleum levy should be abolished and petroleum prices should be lowered,” he said.

The JI chief assured the government that JI would not make “obstinate demands”.

He said the government delegation had asked JI to postpone its sit-ins, but the party decided to continue the protests alongside negotiations with the government.

Meanwhile, Prime Minister’s Adviser Rana Sanaullah said the committees formed by JI and the government would reach a workable solution within two weeks.

He said the government would act on the recommendations put forward by the committees.

On August 16, JI announced sit-ins in all provincial capitals against the petroleum levy. It also called a nationwide strike on September 3.