Hafiz Naeem slams petroleum levy, accuses rulers of lavish spending amid economic crisis

Hafiz Naeem slams petroleum levy, accuses rulers of lavish spending amid economic crisis

Announces countrywide strike after Eidul Adha

Says petroleum development levy clocks in at Rs8,068 billion

*Successive governments since 2001 failed to utilise the funds for the upgradation of oil refineries, the original purpose of levy, says JI leader*

*KARACHI: MAY 22:* Jamaat-i-Islami (JI) Pakistan chief Hafiz Naeemur Rehman on Friday sharply criticised the government over rising petroleum levies, saying that the rulers were burdening ordinary citizens with excessive taxation while continuing extravagant state spending.
Addressing a press conference at Idara Noor-e-Ha, the JI Karachi headquarters,, he said there was “no link” between international market conditions and the increase in petroleum prices in Pakistan, highlighting that more than Rs107 per litre was being charged in the form of levy and taxes on petroleum products.
He said the petroleum development levy had already generated Rs8,068 billion over the years, but successive governments since 2001 had failed to utilise the funds for the upgradation of oil refineries, which was the original purpose of the levy.
“If even five per cent of this amount had been spent on refinery development, significant progress could have been achieved,” he said, adding that the Jamaat-i-Islami had challenged the levy in the constitutional court.
He criticised the government for imposing what he termed “tax upon tax” on the public while refusing to reduce its own expenditures and privileges. Referring to recent remarks by economic adviser Khurram Shahzad, he condemned the statement that the levy did not affect motorcycle riders.
He argued that even a person using one litre of petrol daily for a motorcycle was effectively paying around Rs117 in levy and an additional Rs40 to Rs50 in taxes. “Motorcycle users largely belong to the poor and lower-middle classes, yet the government is collecting hundreds of billions of rupees from them,” he said.
Highlighting that there were around 25 million motorcycles in the country, he estimated that if even 10 million motorcycles consumed one litre of petrol daily, the government would collect approximately Rs1.5bn every day, amounting to over Rs450bn annually.
The JI chief further said that the government had already collected Rs1,200bn in petroleum levy during the first nine months of the current fiscal year, while the International Monetary Fund was pressuring authorities to further increase the levy by 18pc and impose an additional Rs430bn in taxes.
Turning to government expenditures, he said the ruling elite was maintaining luxurious lifestyles at public expense while ordinary citizens struggled with inflation, unemployment and high utility bills.
He criticised Punjab Chief Minister Maryam Nawaz for reportedly using an aircraft worth Rs11bn, and said the Senate chairman had acquired a vehicle costing Rs90m. He also criticised the bureaucracy for making decisions affecting the public while enjoying lavish perks and privileges.
The Jamaat chief said his party had already launched a countrywide movement against inflation, taxes and the petroleum levy, beginning with a major march in Islamabad followed by rallies and protests across the country.
He announced that the party would soon give a call for a nationwide “wheel-jam strike” after Eidul Azha, during which roads would be blocked across the country except for ambulances.
Discussing international issues, Naeemur Rehman condemned continued Israeli atrocities in Gaza despite the ceasefire, accusing Israel and the United States of carrying out “terrorism and genocide”, particularly against children.
The JI leader also criticised the United Nations and international human rights organisations for what he described as their silence over atrocities in Palestine and the reported torture mistreatment of international activists detained during the flotilla campaign.
He warned that the lack of arrangements at town level for Eidul Azha sanitation could result in a severe cleanliness crisis during the holidays.
He further alleged corruption in the Benazir Income Support Programme and demanded a forensic audit of the initiative, claiming that it had become “a hub of corruption” and was fostering dependency instead of empowerment.