Senate Committee Stands Up for Motorcyclists, Rejects Petroleum Development Levy Hike

The Senate Standing Committee on Finance has rejected a proposal to increase the Petroleum Development Levy (PDL) on petrol by Rs. 20 per liter, from Rs. 60 to Rs. 80.

Decision to Impose Rs. 20 per Liter Levy on Petrol Met with Disapproval

The committee, chaired by Senator Saleem Mandviwalla, expressed strong reservations over the government’s plan to increase the PDL on petrol, citing the significant financial burden it would impose on the masses.

Pakistan’s Economy and the Petroleum Sector

Pakistan’s economy has been facing numerous challenges, including a significant trade deficit and declining foreign exchange reserves. The petroleum sector is a significant contributor to the country’s economy, and any changes in the PDL can have far-reaching implications.

Committee Urges Protection for Motorcyclists

The committee emphasized the need to safeguard motorcyclists from the proposed increase, citing the significant financial burden it would impose on them. Motorcyclists are a significant segment of the population in Pakistan, and any increase in the PDL would affect them disproportionately.

Officials Brief Committee on Revenue Projections

Petroleum Division officials informed the committee that the levy increase would generate an additional Rs. 240 billion in revenue. However, the committee expressed skepticism over the government’s ability to collect this revenue, citing past failures to meet revenue targets.

Exemption Scheme Deemed Challenging

Officials expressed difficulty in devising a scheme to exempt motorcyclists from the levy increase. The committee suggested exploring alternative options, such as increasing the levy on high-octane fuel instead.

Read Also: Pakistan Government Slashes Petrol and Diesel Prices by Up to Rs 10.20 per Liter

Alternative Proposal Suggested

The committee proposed increasing the levy on high-octane fuel to Rs. 100 per liter instead. This move would target the affluent segment of the population, who are more likely to use high-octane fuel.

Committee Chairman Advocates for Progressive Taxation

Senator Saleem Mandviwalla stressed that the government should prioritize increasing taxes and levies on the wealthy rather than imposing additional burdens on the poor. He emphasized the need for progressive taxation, where those who have more contribute more to the national exchequer.

By rejecting the proposal to increase the PDL on petrol, the Senate Committee has sent a strong message to the government to prioritize the needs of the common man. The committee’s suggestion to increase the levy on high-octane fuel instead is a step in the right direction, and it remains to be seen how the government will respond to this proposal.