Petrol Price Will Increase Once Again? - Shabbar Zaidi Breaks Big News
#SawalYehHai #PMShehbazSharif #PetrolPrice #PetrolPriceHike
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Transcript
00:00 The latest demand from the IMF is that the petrol levy should be increased to Rs 60 and
00:06 then the additional sales tax should be imposed.
00:08 Does Pakistan have the means to negotiate this or is the increase in the price of petrol
00:15 non-negotiable?
00:16 This will have to be done and how much will the government have to increase the price
00:22 of petrol?
00:23 The simple formula of the IMF is that we have to eliminate the circular debt of petrol
00:35 and the subsidy that we have is not a circular debt.
00:39 We have to eliminate it from the entire system.
00:43 We are unfortunate that the circular debt and the power sector has many reasons, one
00:53 of which is the theft of electricity and the inefficiency of our plant.
00:57 We are unfortunate that we are not able to cover the theft of electricity and the inefficiency
01:07 of our system and we bow down to the IMF that we will eliminate the subsidy in the power
01:14 sector and put all the burden on the people.
01:17 This is conceptually wrong.
01:19 It is also right that they are giving subsidies in the government of Pakistan, but we have
01:27 to give subsidies indirectly because there is theft and inefficiency in our system which
01:33 we are not able to correct and we are not able to see any fundamental effort to correct
01:40 it.
01:41 So we are actually putting the burden of the correction that should have been in the system
01:48 on the people and this petrol price will increase which will contract the economy and increase
01:55 the inflation.
01:56 This is not a good step, but the government of Pakistan has no excuse.
02:02 They will agree to this and the price will increase.
02:05 Right, and what is the alternate to this?
02:07 Because I remember you people kept trying to impose tax on retail, before this Mr. Mifta
02:11 Ismail also kept trying.
02:13 This time the government has shown the intention of imposing tax on retail.
02:17 They say that we are going to do this, although their voter base is very low.
02:21 Now I come to this.
02:23 I said yesterday in a program that real estate, agriculture and retailers are three sectors
02:32 which in Pakistan give very less tax than their economic activity.
02:38 I will come to agriculture and real estate later.
02:44 The biggest sector is of retailers and the demand of tax on retailers, IMF is absolutely
02:51 correct and we have been failing in this and every government fails in this.
02:57 It is not that no government has succeeded.
03:00 Now the question is that they have to be taxed but they do not have the capability or capacity
03:10 to impose tax on the government and including the establishment because they have a shutter
03:17 mafia and they close it and create a position of law and order.
03:23 Now the question arises that the government of Pakistan at this time, which is now the
03:30 time, in which we are standing on the threshold of default, will the government of Pakistan
03:35 concede or not?
03:37 I want to tell you one thing in this.
03:40 I said yesterday or the day before yesterday in a program that Shabaz Sharif has been the
03:47 president of Lahore Chamber of Commerce and if you ask me, the biggest obstacle in imposing
03:54 tax on retailers and wholesalers is the Chamber of Commerce of Punjab which does not want
04:01 to allow this work to be done.
04:03 So if you want to do this, then Shabaz Sharif will have to use his political clout, he will
04:11 have to put his political clout at stake and this work will have to be done.
04:16 It is not Aurangzeb's job to go and have a political discussion with the retailer.
04:23 So this will be the biggest test and because I have gone through this process completely,
04:30 until the establishment people do not stand behind him completely and Shabaz Sharif will
04:37 not be ready to put his political position at stake, the Punjab government will not stand
04:44 behind him, this work cannot be done and here is the do and die of Pakistan at this time.
04:51 If you do it, then Pakistan will be saved, if you do not do it, then Pakistan will go
04:56 into very severe difficulties.
04:58 The third thing that I would like to say is that we will have to explain to IMF that if
05:05 you tell me that I will do it in 6 months or in a year, for this we will have to give a
05:12 3-4 year long term program, then this will happen.
05:15 If they do it like this, then it will happen, otherwise it will not happen, but it is necessary
05:20 to do this, there is no way out without this.
05:23 The IMF has told the FBI that the tax on the employees and non-employees will increase,
05:30 there are many categories in this, the middle class is already paying 3-4 times more taxes
05:35 in Pakistan than the employees.
05:37 For this, there is a relief, but do you see more taxes being imposed on this?
05:45 See, Mariana, the very interesting thing is that the rate of tax is the same for both.
05:53 If your income is 100 and you are paying 30% tax, then you are paying 30.
05:58 The businessman has the choice that he declares 30 out of 100 from his income, then it becomes
06:04 30%, which becomes 9 rupees.
06:06 The problem is that the rates are the same for both, there is no difference in the rates.
06:11 But until we correct the income of that businessman, my personal opinion is that the tax on the
06:19 salary-paying class will not increase, but it will not decrease either.
06:23 I have no hope that the rate will decrease, the rate will increase, it is possible that
06:28 perhaps the rates of the people above 10-20 lakhs will increase, but the rates of the
06:34 lower and middle classes will not increase.
06:41 [NON-ENGLISH SPEECH]