It is essential that a clear-cut simple pricing formula for fuel is devised and also ensure that no loopholes exist for the government to impose further taxes and other levies or manipulate the retail prices.
Here are some suggestions:
1. Kerosene shouldn’t be subsidized to everyone but the poor. Cheaper, subsidised kerosene should be given in the form of coupons, cash or other means.
2. Enforce a single reasonable tax in the form of a ‘FIXED SUM added to the final retail price of a litre of petrol and diesel and not as a percentage of the cost. The tax should not be a percentage of the final cost because if the cost of the imported oil goes up then the taxes will also go up and ultimately the consumers will be burdened with a much higher retail price.
3. Payments from state agencies due to the CPC should be forthwith recovered or action should be taken to recover these dues.
4. A committee comprising of knowledgeable and competent ruling and opposition parliamentarians, the Treasury Secretary, CPC Chairman and two knowledgeable members each from among the public and the industry, should be appointed to fix the prices as and when fuel is imported to the country. The pricing formula and the subsequent changes in the final retail prices of fuel should be made known to the public.
Dr. A.R. Mohamed
Kandy |
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