LAHORE: The Punjab government is working on a proposal seeking imposition of a new tax on the public at large in a bid to reduce the burden of billions of rupees subsidy it has been paying on fares of the Metro and Speedo buses and, the Orange Line Metro Train (OLMT).

Though the proposal had been floated two years back by the Punjab Mass Transit Authority (PMTA), the transport department took it up again with Chief Minister Usman Buzdar in a recent meeting, Dawn has learnt.

“Around two years back, the PMTA had prepared a proposal after examining models in various countries as suggested by the World Bank on the measures leading to reduction in the burden of the government subsidies (in various sector). It suggested introduction of a new tax or fee to be charged from the residents of three mega cities of the province — Lahore, Rawalpindi and Multan -- where the public at large was using modern transport facilities [like Metro bus, Orange Line train etc],” a senior official told Dawn on Tuesday.

The idea seemed appealing to the sitting [PTI-led] Punjab government that was already feeling the heat of the subsidy it had to pay for the operations of Metro Bus and Feeder Bus Systems in Lahore, Rawalpindi and Multan and the Lahore Orange Line Metro Bus. The government had also enhanced the one-way fare of the Metro bus from Rs20 to Rs30, contrary to the PML-N government that continued with Rs20 fare, since launch of the Metro bus operation in Lahore. It kept charging the same fare till May, 2018, in the three mega cities.

According to the official, the government has been paying over Rs7 billion annual subsidy for the operations of Metro and Speedo buses in the three cities; Rs4.25 billion for Lahore (both Metro and Speedo buses), Rs2.25 billion for Rawalpindi /Islamabad (Metro bus) and over Rs1.5 billion for Multan (Metro bus). Similarly, an annual subsidy for 2020-2021 amounting to Rs4.5 billion or so has been fixed for the Lahore Orange Line Metro Train (OLMT) operation that began in October, last year. For OLMT a Rs40 fare was fixed last year for traveling from Dera Gujjran to Ali Town — around 27km-long route connecting Lahore’s northern parts with the central and southern areas.

“Suppose, a tax amounting to minimum Re1 is imposed [on each resident], the government could collect Rs1 billion from Lahore alone, annually,” the official said, suggesting that the new tax could be charged through sales tax or other provincial levies.

He said around a year ago, Adviser to the Chief Minister Salman Shah had taken up the proposal with the Punjab government after the transport department pursued it.

He said on last Monday (March 22), the transport minister discussed the issue with Chief Minister Usman Buzdar in a meeting, and was told to also discuss the proposal with all stakeholders before finalising it. “Actually, the government wants to make the modern transport systems [Metro buses, Orange train etc] sustainable. That is why the proposal is being reconsidered,” the official maintained.

On the other hand, the citizens Dawn talked to on the issue rejected the proposal, terming it anti-public. “It seems the government wants to further crush the people who are already overburdened by the rising prices of commodities, vegetables, fruits etc. It has also increased the tariff on the utility bills, pushing the cost of living up further, besides causing unemployment and other issues,” a citizen deplored.

Another said that the governments world over built modern transport infrastructures not for earning income, but for facilitating their citizens.

“That is why such public transport systems (subways, buses etc) are heavily subsidised to facilitate the people,” he added.

Published in Dawn, March 24th, 2021