The government has raised the price of petroleum products. Along with that, the electricity tariff is also increased two percent which will be increased every month. The recent hefty increase will burden the consumers who have fixed monthly income and it would contribute to further inflation.
The OGRA which was establish to look after the interests of the consumers has miserably failed to achieve its objectives. It has been making the mockery of its own rules while its parent ministry, Ministry of Petroleum and Natural Resources, is also criticizing its performance publicly. The OGRA has been accused of not being able to perform its functions.
The government arguments that the increase in international oil prices has caused the increased in petroleum product as we are dependent on imported petroleum products. However, the oil pricing mechanism in use in Pakistan is providing the government a tax revenue of more than Rs 200 million. Approximately four out of every ten rupees spend on petroleum products are collected by the government in the form of indirect taxes, due mainly to the governments failure to collect more direct taxes on the income of individuals and companies.
Why the government is not taking measures to reduce its expenses? Why cant it reduce the size of the cabinet and control the corruption? Why cant it stop its free spending ways and adopt financial discipline?
It seems the purpose of the elected government is to protect its rotten tax collection system at the cost of hapless consumers.
S T HUSSAIN
Lahore
