The Pakistan Chamber of Commerce urged the government to reduce petroleum taxes by more than half, citing rising fuel costs and their impact on production and food prices. Current taxes on petrol stand at Rs114 per liter, while diesel is taxed at Rs100 per liter. The increase in global oil prices, driven by the ongoing US-Iran conflict since February, has intensified pressure on domestic markets.
The business body emphasized that high fuel costs are affecting both consumers and industries, leading to higher production expenses and inflated food prices. The US-Iran tensions have contributed to volatility in global oil markets, with prices climbing steadily over the past months. This has created a challenging environment for businesses and households alike.
The call for tax reduction comes amid growing concerns over inflation and economic stability. The government has faced criticism for maintaining high levies despite rising global energy costs. Analysts suggest that lowering taxes could provide temporary relief to consumers and help stabilize the economy. The situation highlights the broader impact of geopolitical tensions on everyday costs.
