ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said unjustified taxes on fuel continue to hurt masses and economy therefore the same should be reduced.

High prices of fuel has become an incentive for smugglers who are thriving on low prices of oil and gas in Iran and Afghanistan, it said.

Border arrangements have failed to deter the smugglers as fifteen to twenty percent petrol consumed in Pakistan is said to be smuggled from neighbouring countries, said Dr. Murtaza Mughal, President PEW.  

He said that smuggling of LPG continue to increase grabbing around thirty percent of the local market putting survival of local producers at stake as involvement of big fish cannot be ruled out.

He said that fifth upward revision in the prices of fuel in the last three months proves the incompetence of export industries and revenue collectors which has left government with no option to boost revenue.

The situation has forced government to impose additional tax on bank transactions which has resulted in non-compliance hitting businesses, banking and revenues, he added.

He said that nobility should be brought into the tax net to finance ongoing war on terror.

Taxing aristocracy has become imperative to improve relations between government and taxpayers, fund the war which is tied to our survival and break the begging bowl as masses reeling under problems are unable sacrifice more to keep rich happy.