ISLAMABAD: Minister for Finance, Muhammad Ishaq Dar Saturday said that the government has tried to pass on maximum effects of reduction in petroleum prices to domestic consumers during the last five months.
Addressing a press conference here he said that the petrol price had reduced by Rs 37.68 per liter as it came down from Rs 107.97 per liter in August 31, 2014 to Rs 70.29 per liter by February 1, 2015.
He said that the prices of High Speed Diesel (HSD) were reduced by Rs 28.73 per liter and reached at Rs 80.61 per liter which was earlier recorded at Rs 109.34 per liter.
Besides, he said that prices of Kerosene oil decreased by Rs 35.61 per liter and reached Rs 61.44 per liter as compared to its earlier price of Rs 97.5 per liter.
Ishaq Dar said that the prices of Light Diesel Oil (LDO) recorded decrease of Rs 35.34 per liter during last five months as it stood at 57.94 per liter and HOBC was reduced by Rs 52.32 per liter during the period under review.
he government had to bear Rs 68 billion loss in terms of sales tax due to the reduction of petroleum prices in domestic market and government has decided to retain Rs 2.76 per liter as additional sales tax in petrol, Rs 3.16 on HOBC, Rs 2.42 on kerosene oil, Rs 3.18 on HSD and Rs 2.28 on LSD.
He said the decline in oil prices had an implication of Rs 68 billion on the tax revenues of the government, but the five percent duty would help reduce it by Rs 28 billion adding that government would have to face Rs 40 billion loss.
The minister said the new price would be effective from February 1, and the price of high octane would be slashed by Rs 11.82 per liter and the kerosene oil by Rs 10.48 per liter.
He said price of high speed diesel has been reduced by Rs 5.62 per liter and light speed diesel by Rs 9.56 per liter and HOBC by Rs 11.82 per liter respectively.
Giving the figures of economic indicators during last six months, the minister said that tax collection of Federal Board of Revenue has registered 12.7 percent growth compared with the collection of same period last year.
He informed that tax collection during last six months has been recorded at Rs 1162.41 billion as against the last year’ revenues of Rs 1031.4 billion, besides budget deficit was recorded at 2.3 percent as against the set target of 4.9 percent for the current financial year.
During the period under review exports from the country decreased by 1.93 percent and reached US$ 12.22 billion as compared to exports of US$ 12.46 billion of same period last year.
Imports in the country were recorded at US$ 22.02 billion as compared to the imports of US$ 21.16 billion of last year showing an increase of 4.08 percent adding that home remittances witnessed 15.26 percent increase as compared to same period of last year.
He said that country has received US$8.98 billion during last six months of current financial year as it stood at US$7.79 billion in corresponding period of last financial year.
Ishaq Dar said that inflation was recorded at 4.3 percent during the month of December which was recorded at 9.2 percent in the same month of last year adding that cumulative inflation of last six months was recorded at 6.1 percent as against 8.9 percent of same period last year.
About the agriculture credit disbursement, the minister said that during last six months it was increased by 37.74 percent and reached at Rs.219.52 billion as against the set target of 500 billion for the current fiscal year, he added.
The minister said that Karachi Stock Exchange was performing well and it has touched the record level of trading during last day’s trading besides 2,192 new companies have been registered during last six months.
To facilitate the individual tax payers, the minister said the government had decided to simplifying the system of tax return and there would no need of national tax return number (NTN) by July 31 as the national identity card would be considered as NTN.
At the outest of press conference, the minister offered Fateha for the people who were martyred in Shikarpur Imambargah blast and expressed sympathy with the bereaved families.