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JI Presses for Levy Reduction
Jamaat-e-Islami chief Hafiz Naeemur Rehman on Tuesday said his party workers would reach Islamabad on September 20 to press for a reduction in the exorbitant petroleum levy .
Naeem said the government had collected Rs1,567 billion in petroleum levy during the last fiscal year and was charging consumers Rs135 per litre under the levy and other related taxes. “The levy should be reduced and prices should not be allowed to rise,” Naeem said at a news conference in Karachi, arguing that cheaper fuel would benefit consumers and industry and help stimulate economic activity .
He described the levy as “extortion” from the public and said the government could reduce it because the charges imposed on petroleum products were not directly linked to international oil prices. “This includes Rs80 in petroleum levy and Rs5 in climate support levy, besides other taxes that the government is collecting on every litre,” he said .
Naeem said Jamaat-e-Islami had also proposed a formula to the government for reducing the levy, adding that the problems facing consumers would not be resolved until the levy was abolished. He said sit-ins were continuing in 40 cities and warned that routes into Islamabad were already being closed ahead of the party’s planned march .
Third Round of Talks Held
Meanwhile, a Jamaat-e-Islami delegation led by party deputy chief Liaquat Baloch met Federal Ministers Ali Pervez Malik, Azam Nazeer Tarar, and Bilal Azhar Kayani to discuss the petroleum sector, fuel availability, and prices .
The government officials briefed the delegation on measures taken to maintain fuel supplies during the recent crisis and said steps were being taken to protect consumers and ensure uninterrupted availability. Petroleum Minister Ali Pervez Malik also briefed the delegation on the government’s petroleum pricing mechanism based on a seven-day rolling average. He said targeted subsidies were being provided for motorcycles, Qingqi rickshaws, rickshaws, and small cars to provide relief to consumers most affected by fuel prices .
Baloch welcomed the government’s fuel relief measures but called for a permanent solution, including a reduction in petroleum levy. The government also told the delegation that measures were being taken to increase the tax base and promote direct taxation, while assuring the JI representatives that their recommendations would be conveyed to Prime Minister Shehbaz Sharif .
Law Minister Azam Nazeer Tarar said providing relief to the public was the prime minister’s top priority .
Background of the Dispute
The latest meeting was the third round of talks between the government and Jamaat-e-Islami. The first was held on September 7 and the second on September 11, when the government asked the party to postpone its planned long march. Jamaat-e-Islami has been holding sit-ins in major cities against the petroleum levy and fuel prices and has announced a march on Islamabad on September 20, with party supporters expected to travel to the capital from across the country .
