In order to make up for the subsidy and promote public transport, the Punjab government has decided to impose a ‘Gasoline Tax’ in Lahore, Rawalpindi, and Multan.
Currently, the Punjab government is providing a monthly subsidy of Rs. 12 billion to the operators of Orange Line Train and Metro Bus Systems in these cities.
Under the approved mechanism, citizens of these cities will be charged an extra Rs. 1-2 per liter in addition to the regular prices of petroleum products regulated by the federal government.
According to details, the decision has been taken on the recommendation of the Punjab Mass Transit Authority (PMA) and it will come into effect on 1 March.
Muhammad Shah, PMA’s GM Operations, has said that gasoline tax is a standard practice that aims to promote public transport around the world.
He argued that ‘Gasoline Tax’ will generate significant revenue annually which the provincial government will allocate for subsidizing the public transport in the three cities.
On the other hand, citizens of these cities have unequivocally rejected the ‘Gasoline Tax’ claiming that the tax will put an additional burden on the public that is already grappling with a strained financial situation.