Minister’s advice
February 19, 2022
This refers to the news report ‘Shibli Faraz advises masses to ‘limit use of petrol’ amid price hike’ (February 16). The brilliant minister has advised people to ‘limit’ the use of petroleum products to avoid the impact of high fuel prices. I heartily agree with him.
However, this does make one wonder: if everyone were to reduce their petrol consumption, wouldn’t the government suffer? A sizeable portion of the petrol price is composed of taxes. So what will the government do to make up for the decrease in tax collection? Will it increase petrol prices even more – or impose a tax on air consumption, which is the one thing that has not been taxed so far? It is a catch-22 situation.
Shakir Lakhani
Karachi
https://www.thenews.com.pk/print/934858-minister-s-advice
FUEL PRICES
One of the federal ministers recently advised the people to limit the use of petroleum products to avoid the impact of escalating fuel prices. I totally agree with him. There is one thing that bothers me, though. If people reduced their petrol consumption, the government would not get as much in tax as it does now, as about 40 per cent of petrol price is composed of taxes. What will the government do to make up for the decrease in tax collection? It is a classic Catch-22 situation. The government should seriously consider imposing a tax on air consumption, for that is the one thing that has so far not been taxed.
Shakir Lakhani
Karachi
February 25, 2022
https://www.dawn.com/news/1676982/fuel-prices
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