May 8, 2002	Wednesday	Safar 24, 1423

PESHAWAR, May 7: The NWFP government is likely to introduce a new type of user charges in shape of ‘fuel toll tax’, which would be charged over and above the price of petrol and diesel.

“To be collected through petrol pumps, fuel toll tax will be levied under the next financial year’s budget,” contained in an official document of the provincial government.

The move is part of the government plan to revise upward the ratio of user charges and brought some new areas under this cess in its budget for the next financial year, official sources told Dawn here on Tuesday.

Apart from increasing user charges by 20 per cent over and above the prevalent rates in the case of abiana (water rates) during the next financial year in line with guidelines set forth for provinces by Islamabad in accordance with its agreement with international donor agencies, the provincial government, said the sources, was also planning to increase the user charges for roads and tertiary health and education services during the 2002-03 financial year.

The provincial government, said the sources, was looking forward to increasing rates of user charges by 37 per cent during the next financial year by revising upward several of the fees and charges collected through different services extended by its social sector departments.

“Provincial government’s own receipts both from taxes and user charges will register major increase, i.e. 22 per cent and 37 per cent respectively during the next financial year,” said senior government functionaries.

Increase in the over all provincial own receipts is being eyed for achieving, what the official sources termed as, much wanted fiscal space the province lacked presently owing to its over dependence on federal releases constituting over 90 per cent of the total annual receipts of the provincial government.

According to the NWFP government’s policy document submitted to one of the leading international donor agency, the provincial financial managers have committed to increase user charges consistently and considerably every year during the next four financial years.

The increase, said the sources, would be from the likely proceeds of over Rs1500m in the 2001-02 financial year to around Rs2500m in the 2004-05 financial year.