Egypt's changing situation made Pakistani rulers to retreat from their economic stance. Two assaults on us from the rulers were due in the last week of January. One was interest rate hike and other was increase in the petroleum prices. But, thanks to Egypt’s 29/1, like ruling elite of other countries, Pakistani ruling elite (political leadership + establishment) have become frightened and decided to keep the interest rate and petroleum prices unchanged.
Benchmark Interest rate (known as Discount rate) was expected to increase by 50 basis points that would have reflected hike in the cost of production that ultimately affect consumers.
Before Egyptian revolt against dictator and US ally Hossni Mubarak, Pakistani economic managers including petroleum minister Naveed Qamar had hinted a 10 rupee hike in petrol prices for Feb.
But, ruling elite believed that hike in both rates in the same month may result an Egypt like reaction, therefore they decided to keep the rates change.
Some Considerations:
Already We have been looted on the name of Petroleum Development Levy without justifying why should every Pakistani pay for the development of petroleum sector? You own a vehicle or not you pay PDL directly or indirectly.
The big companies are earning profits and we are being forced to pay a levy for the development petroleum sector.
Second We have been targeted with double taxation as we pay PDL and Sales tax on petroleum prices. There should be only one tax either PDL or Sales Tax for a consumer.
The same situation we are facing in cell phone charges where we pay tax on the entire bill plus we also pay sales tax on each call. It can be verified by paying phone cards. On 100 rupees card, tax of Rs 16 is being deducted immediately while, government deduct more taxes on each call. So, on every Rs 100 payment, we pay Rs 30 to Rs 40 to the government.
Double taxation, failed privatization of public utilities and weak regulatory bodies to check wrongdoings of big companies are the tools of looting Pakistani people.
Farhan Reza
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