The Senate Standing Committee on Finance Friday questioned the decision to increase the petroleum development levy on petrol by Rs. 20 per liter to Rs. 80.
The committee meeting, chaired by Senator Saleem Mandviwalla, was of the view that the increase in levy by Rs. 20 per liter on petrol would put a massive financial burden on people using motorcycles.
The committee urged the Petroleum Division to come up with a mechanism to protect motorcyclists from the proposed increase in levy.
The officials briefed the committee that the increase of Rs. 20 per liter in petroleum development levy would result in additional revenue of Rs. 240 billion. They also told the committee that during the current fiscal year, the government has surpassed the levy collection target by Rs. 40 billion.
The officials were of the view that it would be very difficult to devise a scheme where motorcyclists are exempted from an increase in levy.
The committee did not approve the proposal to increase the levy on petrol by Rs 20 per liter and suggested increasing the levy on high-octane to Rs. 100 per liter. The committee chairman said that the government should increase taxes and levies on the rich rather than burdening the poor.
