The government has fulfilled another condition of the International Monetary Fund by increasing the climate support levy on petrol and diesel by 100%, while reducing the petroleum levy to avoid any change in fuel prices.
The climate support levy on petrol and diesel has been increased from Rs2.50 to Rs5 per litre. The new petroleum levy rates have been implemented from July 1.
According to details, the petroleum levy on petrol and diesel has been reduced to adjust the increase in the climate support levy.
Fuel prices remain unchanged
Officials said no change has been made in petrol and diesel prices due to adjustment in the rates of two different levies.
The petroleum levy on petrol has been reduced from Rs66.66 to Rs64.14 per litre. The levy rate on diesel has been reduced from Rs79.97 to Rs70.4 per litre.
Also Read: Levy on petrol, diesel increased after fuel prices kept unchanged
The reduction in petroleum levy was made to offset the higher climate support levy.
Sherry Rehman raises concerns
PPP leader Sherry Rehman expressed serious reservations over the 100% increase in the climate support levy. She questioned where the revenue collected in the name of the climate support levy was being spent.
Sherry said the climate support levy should be separated from the petroleum levy and its use must be made completely transparent. She said every rupee collected in the name of the environment should be allocated only for environmental projects.
She said glaciers are melting rapidly and flood risks are increasing, making proper use of climate funds essential.
The PPP leader said the purpose of the climate support levy should not only be revenue collection but also environmental protection.
Public should see benefits, says Sherry
Sherry Rehman said the public is paying an additional levy, so the government should also show its benefits to the people. She demanded that complete details be released on which projects were funded through revenue generated from the levy.
Also Read: Govt keeps petrol, diesel prices unchanged
She also called for regular audit and monitoring of funds allocated to deal with environmental challenges.
Separate system proposed for climate funds
Rehman criticised the government’s policy, saying reducing the environment budget while increasing the climate levy was contradictory.
She urged the government to establish a separate and transparent system for the collection and expenditure of the climate support levy.
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