ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif has announced waiving a fixed tax on traders that had been imposed in the latest budget and said millions of consumers would no longer have to pay fuel adjustment charges (FCA) that inflate power bills.
In a video address from Qatar, where he is on a two-day trip, Shehbaz said fuel adjustment charges, linked to international fuel prices, had seen an exorbitant rise due to which additional charges had to be imposed on electricity bills.
“I took notice of this [inflated electricity bills] and ... we have decided to waive additional charges from the electricity bills of 17 million consumers out of a total of 30 million,” the PM said.
On the fixed tax for traders, Sharif called it a mistake.
“The fixed tax was imposed against our vision,” the PM said. “I have formed a committee to fix responsibility for this.”
“[Waiver] will create a gap of Rs42 billion tax revenue but we are not going to take any step that will create difficulties for our small traders,” he said. “Traders should not worry about this tax now. It’s been withdrawn.”
Sharif also cited hurdles in taking measures related to the economy, saying the government had to consult with the International Monetary Fund (IMF) before making any decisions as it tried to revive a stalled $6 billion loan program.
