ISLAMABAD: Committees of the federal government and Jamaat-e-Islami are due to meet to finalise a draft agreement on abolishing the petroleum levy — the tax added to petrol and diesel prices — after both sides moved closer to a deal, according to sources.
Phased withdrawal on the table
The talks are expected to centre on a government plan for a phased withdrawal of the petroleum levy and support for selected sectors. Sources said Islamabad has agreed in principle to scrap the levy step by step rather than in a single stroke.
Jamaat-e-Islami’s delegation is to include Nasrullah Randhawa and Syed Farasat Shah. The government side is to be represented by Federal Minister Ahsan Iqbal, Rana Sanaullah and relevant officials. Once the committees finish their work, leaders from both sides are expected to examine and approve the final draft.
Relief for small vehicles and farms
Sources said the government has also shown willingness to ease costs for owners of vehicles with engine capacity of up to 800cc and 1,000cc. Relief for the agriculture sector has likewise been agreed in principle, they added.
The federal government had earlier decided to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961. That step comes amid criticism of the petroleum levy and higher petrol prices that have weighed on low-income households. Jamaat-e-Islami has been pressing for the levy to be removed so consumers facing high fuel costs can get relief.
Timeline: what has happened so far
- Earlier: The federal government decided to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961.
- Wednesday: Sources said government and JI committees would meet the same day to finalise a draft on abolishing the petroleum levy, focusing on a phased exit and sectoral relief.
Aasan alfaaz mein
Sarkar aur Jamaat-e-Islami petroleum levy — yani fuel par lagney wala tax — khatam karne ke qareeb hain. Dono taraf ki committees draft agreement final karne ke liye mil rahi hain. 800cc aur 1,000cc gaariyon aur kheti ke liye bhi relief ki baat ho rahi hai. Deal hone par fuel ke kharch mein madad mil sakti hai, lekin final sharaait abhi tay honi hain.
