Tuesday, March 31, 2009

Fuel versus cigarettes

The United States government has recently hiked the tax on cigarettes that has resulted in consumers paying up to $7 a pack, if we compare our state best pack of cigarette cost us less than a dollar here in Pakistan.

It is a a suggestion to the present popular government( that what every government calls itself) that if they are taking loans from the international organizations like the IMF and the World Bank and have to submit to their demands in doing so. They can levy taxes on items like the luxury cars and the cigarettes instead of killing the already over burdened common man by levying massive taxes on fuel and petroleum products.

This is a suggestion that will yield two results

a. Prices of daily commodities, inflation and high cost will come down drastically as these are all linked with the high fuel price.

b. This will increase the buying power of a common man thus no revenues will be lost in the sales of cigarettes and who knows the import of luxury cars/items might increase as well.

It is up to the so called experts who are sitting at the helm of affairs to at least open up their eyes and try to find some "out of the box" solution to the current economic problem!

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