ISLAMABAD: An economic watchdog has urged the government to cut direct and indirect taxes on oil and gas and give benefits of reduced oil prices to masses.
Last year, federal government collected Rs 912 billion as taxes, while the collection of provincial governments is not included in it.
The collections of government will surpass mark of trillion rupees as taxes on some petroleum products have been increased, said Pakistan Economy Watch (PEW) President Dr Murtaza Mughal.
According to a statement, he said that over reliance on indirect taxes amounts to admission of the failure of Federal Bureau of Revenue (FBR) by authorities. This policy is widening gulf between rich and poor, therefore, it should be altered at earliest in the national interest, he said.
Mughal said that last year government earned Rs 149 billion under the head of petroleum levy, which was Rs 131 billion a year before.
