Government, JI committees meet to finalise petroleum levy draft

Committees representing the federal government and Jamaat-e-Islami meet in Islamabad on Wednesday to finalise a draft agreement on abolishing the petroleum levy, ARY News reported, citing sources.

The discussion turns on the government's proposal to withdraw the levy in stages and to direct relief at named sectors. The sources quoted by ARY News said the government has accepted in principle that the levy will be phased out. It has also signalled relief for owners of vehicles with engine capacities of up to 800cc and 1,000cc, and an extension of relief to the agriculture sector.

Jamaat-e-Islami's side on the committee will be taken by Nasrullah Randhawa and Syed Farasat Shah. Federal Minister Ahsan Iqbal, Rana Sanaullah and officials from the relevant departments will sit for the government. The leadership of both sides is expected to review the draft once the committees finish and to approve it, according to the ARY News report.

The government had earlier decided to amend the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961. That decision followed mounting criticism of the levy as petrol prices rose, which the report said has added to the financial burden on low-income households.

Jamaat-e-Islami has demanded that the levy be abolished to give consumers relief from high fuel costs.

The ARY News report did not give the size of the proposed relief, the date from which the levy would begin to fall, or how the revenue lost would be replaced. No statement from the finance ministry or from Jamaat-e-Islami was carried in the report, and no date was given for signing an agreement.