The government has announced an increase of Rs 2 per litre in the price of petrol to be effective from today (Thursday) and stated that RON 92 would be available across the country against RON 87. 

Addressing a news conference, Finance Minister Ishaq Dar also disclosed that the government would also collect Rs 100 GST on one MMBTU price of gas reduced for industry from Rs 600 to Rs 400. Price of one MMBTU gas for industry would in fact be Rs 500 ie Rs 400 basic price and Rs 100 GST.

The Finance Minister said the reduction in gas prices for industry would not involve any subsidy. Dar said the government has decided not to increase the prices of kerosene and light diesel oil but the price of petrol would be Rs 2 higher in December 2016 as compared to November.

The Minister stated that OGRA has proposed an increase of Rs 4.01 in petrol price. He added that OGRA proposed an increase of Rs 5.41 in high sped diesel but the government has decided to increase the price by Rs 2.7.

Dar further stated the government has been absorbing the increase in petroleum prices for the last seven months which would have negative impact on the tax collection.

There is a significant shortfall in Federal Board of Revenue (FBR) revenue collection and the government will also bear a loss of Rs 4 billion in the month of December for not passing on full increase in prices to the consumers. Dar said the Prime Minister has approved the summary with directives not to increase the price of kerosene oil.

The government also announced extension in date for filing of tax returns and statements till December 2016 and maintained that tax returns filed with the FBR have been higher in the first five months of the current fiscal year as compared to 400,000 returns filed till December 30 of the previous fiscal year.

Responding to a question about amnesty scheme, he stated that Parliament has approved the scheme to document the property transactions.

The Minister said the federal government has also asked the provinces to increase the DC rates of immovable properties, and termed the amendments made in Income Tax Ordinance 2001 as positive step to document the reality sector.

-Business Recorder