Minister for Planning and Development Asad Umar revealed on Monday that the government had decided in principle to reduce the price of edible oil by Rs45 to R50 per liter in the next fiscal year, according to a press release.
It can be achieve by lowering taxes on edible oil. During a press conference in the capital, the minister announced that the sales tax on edible oil would be reduced from 17 percent to 8.50 percent, that the customs charge per tonne would be halved, and that additional customs duty would be repealed entirely.”
He went on to say that the government had also significantly reduced taxes on petroleum goods in order to pass on as little of the impact of the increase in the price of petroleum on the world market as possible.
He stated that crude oil prices have increased by 81.55 percent in the last 12 months on the worldwide market, with the sole exception being Pakistan, where prices have increased by 17.55 percent over the same period.
According to Umar, the government has reduced the Goods and Services Tax (GST) from 17 percent to 6.8 percent, as well as the Petroleum Development Levy (PDL) from Rs30 per litre to Rs5.62 per litre, when it comes to gasoline costs.
In addition, the petroleum development levy has been decreased from Rs30 to Rs5.14 per liter, bringing the sales tax on diesel down from 17 percent to 10.03 percent.
In the words of Umar, a plan had been put up to provide targeted subsidies on critical commodities to the most disadvantaged parts of society.
In the next few days, Prime Minister Imran Khan will announce the program’s details; however, it is expected that the benefits of the program will begin to reach the public by the end of November, added Umar.
He stated that the coronavirus pandemic had had a negative impact on the worldwide market and then contrasted different products to those from other countries that were not made more expensive in their home country.
In comparison to Pakistan, the minister stated that most items, including petrol, were more expensive in India than in the country. In India and Pakistan, there was just a slight difference in the price of chicken eggs, according to the study.
He stated that the contraction of the world’s economy has a negative impact on the supply of items.
“The price of edible oil increased by 48 percent on the worldwide market, but it increased by 38 percent in Pakistan,” he said, adding that sugar prices increased by 53 percent on the international market, but only by 15 percent in Pakistan.
According to him, the price of urea has climbed by 66 percent on the worldwide market, while the price of urea in Pakistan has increased by 28 percent.