LAHORE: Jamaat-e-Islami (JI) Ameer Hafiz Naeem ur Rehman has said that ordinary Pakistanis will only get meaningful relief once the petroleum levy is abolished. He described the charge as bhatta, or extortion money, imposed on consumers.
Hafiz Naeem said JI’s agenda is clear which include fuel prices must come down and the petroleum levy must be scrapped. He said the government collects other taxes on petroleum products on top of the levy, and this places an additional burden on the public.
The JI chief criticised the government’s position in negotiations with his party. Several rounds of talks have already taken place, he said, and the government is again offering to talk. JI will engage if the government comes forward with a concrete proposal.
He confirmed that the most recent talks between the two sides ended without agreement on abolishing the levy.
Hafiz Naeem also dismissed the fuel relief currently being offered by the government. He said it was not a permanent solution to the public’s problem. JI’s demand remains that the levy be withdrawn and that practical steps be taken to reduce both taxes on petroleum products and their prices.
Explaining why fuel prices matter beyond the petrol pump, the JI Ameer said every increase raises transport and other costs. Those costs then feed into the prices of daily-use goods.
He also criticised the government over the problems facing farmers and over energy prices. He raised questions about independent power producers (IPPs) and capacity payments, and said the government should cut its own expenditure and perks. He objected in particular to foreign trips by government officials and other official spending.
Capacity payments have been one of the most contested features of Pakistan’s power sector for years. Under long-term contracts, IPPs are paid for making generation capacity available whether or not that electricity is used. Critics argue these obligations inflate consumer tariffs. The government has renegotiated a number of IPP agreements in recent years in an effort to ease the burden.
The petroleum levy is a per-litre charge that the federal government collects on fuel sales. It has become one of the state’s most important sources of revenue outside the regular tax system. Federal authorities have consistently tied fuel pricing and levy collection to fiscal targets and budgetary needs. This is a key reason the issue has proved difficult to settle at the negotiating table.
Hafiz Naeem said JI sit-ins are continuing in several cities across the country. He added that the party has prepared plans for further protests. He stressed that the protest is peaceful and centred on public issues.
JI has already announced a march on Islamabad for September 20.
The coming days will show whether a negotiated settlement can be reached before protests intensify.
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