New road tax on petrol and diesel to raise Rs20 bn
08 January, 2014
ISLAMABAD: The Nawaz Sharif government is all set to impose a new road tax on petrol and diesel of Rs1 to 2.50 per litre to extort Rs20 billion from the consumers.
According to top officials of the inter-provincial coordination ministry, in all the four provinces the toll tax on petroleum products imposed on all the highways will be done away with and a road tax will be levied on petrol and diesel.
The ministry of petroleum and natural resources has also confirmed the development saying it is a proposal of the inter-provincial coordination ministry.
Riaz Pirzada, minister for inter-provincial coordination has confirmed that the government wants to abolish the toll tax on petroleum products and instead wants to impose road tax and to this effect the federal government is in touch with the provincial governments. Once the centre gets the nod from the federating units, a summary on the subject will be sent to the Council of Common Interests (CCI ) for approval.
"We have carved out a proposal under which road tax of Rs1 to Rs2.50 per litre on petrol and diesel will be imposed. This will fetch Rs20 billion revenue."The said the amount will then be distributed among the four provinces.
However, the consumers will feel the heat of the proposed decision. The officials of the inter-provincial ministry argued that billions of rupees collected as toll tax are eaten up by the toll tax contractors and the money is not used for the welfare of the masses."So we have decided to abolish the toll tax on petroleum products and in its place impose road tax."