FridayOL

Budget 2025-26: Fuel Levy Hike Sparks Concerns of Increased Burden on Pakistani Citizens

Islamabad – Senator Saleem Mandviwalla, former finance minister and chairman of the Senate standing committee on finance and revenue, has raised serious concerns regarding the upcoming Budget 2025-26. His primary worry stems from a projected increase in the petroleum levy, which he believes will disproportionately impact ordinary Pakistani citizens and further strain household finances.

Speaking on Tuesday, Senator Mandviwalla expressed his apprehension that the government’s reliance on the petroleum levy to meet revenue targets will ultimately prove counterproductive. He argued that while the levy might offer short-term financial gains, it carries significant long-term economic and social costs. The increased cost of fuel directly impacts transportation costs, which in turn affects the prices of essential goods and services across the country.

“The government needs to reconsider its strategy,” Senator Mandviwalla stated. “Relying heavily on regressive taxes like the petroleum levy puts an undue burden on the common man, who is already struggling with inflation and economic uncertainty. We need to explore more sustainable and equitable revenue generation methods.”

Impact on Common Citizens

The proposed increase in the petroleum levy is expected to affect various sectors. Commuters will face higher transportation expenses, businesses will experience increased operational costs, and the prices of everyday goods, from food to clothing, are likely to rise. This could exacerbate the existing inflationary pressures and further erode the purchasing power of Pakistani households.

Committee’s Stance

The Senate standing committee on finance and revenue is closely scrutinizing the upcoming budget. Senator Mandviwalla indicated that the committee is committed to ensuring that the budget is fair, equitable, and sustainable. They will be actively seeking alternatives to the heavy reliance on the petroleum levy and advocating for policies that promote economic growth and alleviate the burden on citizens.

Alternative Revenue Strategies

Senator Mandviwalla suggested that the government should explore alternative revenue generation strategies, such as broadening the tax base, improving tax collection efficiency, and implementing progressive taxation measures that target wealthier individuals and corporations. He also emphasized the importance of attracting foreign investment and promoting exports to boost economic growth and generate revenue.

Looking Ahead

The debate surrounding the Budget 2025-26 is expected to intensify in the coming weeks. Senator Mandviwalla’s concerns highlight the critical need for a balanced and equitable budget that prioritizes the well-being of Pakistani citizens and promotes sustainable economic development. The Senate standing committee will play a vital role in shaping the final budget and ensuring that it reflects the needs and aspirations of the people.

The government has yet to officially release the full details of the Budget 2025-26, but the anticipation and scrutiny are already high, particularly regarding the proposed changes to the petroleum levy and their potential impact on the nation’s economy.