By Zahid Shah 

ISLAMABAD: Pakistani parliament approved another request of the new government to impose a Rs 50 levy tax on petroleum products that would cause another wave of price hike in the country.

On June 10, Finance Minister Miftah Ismail had presented the budget with an outlay of Rs9.5 trillion, the government had avoided taking unpopular tax measures for fear of political backlash. However, the government slowly had to roll back several relief measures after the IMF asked Islamabad to take practical measures to stabilise the economy, according to Dawn.

Parliament, where the country's major political party, Pakistan Tehrik-e-Insaf of former Prime Minister Imran Khan, already resigned, is still running despite 123 MPs resigned. 

The new government of over a dozen political parties passed the budget without the presence of the main opposition and imposed heavy taxes on the nation. 

During the process, the lower house of parliament approved the amendment to impose a Rs50 levy on petroleum products.

“The government has received permission from the house to impose a petroleum levy of Rs50/litre on petroleum products. At the moment, there is no consideration and hope of immediately going up to this figure," Dawn quoted the minister as saying.

With new tax, petrol prices likely to increase to Rs 283 and Disel to Rs 313 P/L in coming days, the highest ever prices in the country's history.

Government also imposed new taxes on the salaried class, those earning between Rs0.6m to Rs1.2m in a year will have to pay a fixed tax of 2.5pc of the amount exceeding Rs0.6m.

Those earning Rs1.2m to Rs2.4m will have to pay a fixed tax of Rs15,000 plus 12.5pc of the amount exceeding Rs1.2m. Where taxable income exceeds Rs2.4m but does not exceed Rs3.6m the tax rate is Rs136,000 plus 20pc of the amount exceeding Rs2.4m.

Those earning between Rs3.6m to Rs6m will have to pay Rs405,000 plus 25pc of the amount exceeding Rs3.6m. For income between Rs6m to 12m, the tax will be Rs10m plus 32.5pc of the amount exceeding Rs6m. Where taxable income exceeds Rs12m, the tax is Rs2.9m plus 35pc of the amount exceeding Rs12m.