Government Ready to Drop Tax Bomb Through Ordinances
As much as Rs 395 billion additional taxes would be imposed under power and gas tariffs
The government is all set to promulgate three ordinances to drop a tax bomb on masses to comply with conditions set by International Monetary Fund (IMF).
As much as Rs 395 billion additional taxes would be imposed under power and gas tariffs.
Power tariff hike
The government will hike power tariff by Rs 4.60 in three phases.
A new 10% surcharge would be imposed on the consumers through the ordinance.
Until June, the power tariff would be hiked by Rs 2.55 per unit and the price per unit will become almost Rs 19.
In 2022, the electricity tariff would be increased by another Rs 1.50 and a unit will cost Rs 20.49.
The increase would continue next year too and in 2023, the people will pay Rs 21.4 for a unit.
The subsidy on electricity will also be withdrawn gradually too and relief in rates would be provided to consumers utilizing less than 300 units.
Gas tariff
The gas supplying companies including Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGCL) seek an increase of up to 200 percent in gas prices from July 1.
SNGPL has demanded its price for the next fiscal year be increased by Rs 857.40 per million British thermal unit (mmbtu).
The gas supplying company in Sindh and Balochistan, SSGCL, suggested a hike by Rs 109.78 per MMBtu, which will help the utility to recover roughly Rs34.9 billion from consumers.
Income tax exemption
The government has decided to withdraw various income tax exemptions worth Rs 140 billion.
The exemptions will be withdrawn through a presidential ordinance on the demand of IMF.
The burden would affect some 80 sectors.
Meanwhile, the income tax exceptions to new industrial units will also be revoked through ordinance and 29% corporate tax will be imposed.
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