‘Increased taxes on CNG unacceptable’

Station owners demand reversal of tax increase

ISLAMABAD: Owners and operators of compressed natural gas (CNG) filling stations have refused to accept the increase in taxes made in the budget for 2017-18 and called for its immediate withdrawal.

“Taxes on CNG outlets have been increased, which will cause problems for the operators and masses, therefore, the government should review its decision and retract the move,” commented Ghiyas Abdullah Paracha, Central Chairman of the All Pakistan CNG Association (APCNGA), in a statement.

CNG station owners have continued to pay 4% withholding tax and 26% sales tax on gas consumption. Now, Paracha said, the method of calculating the withholding tax has been changed and it was being imposed on the volume of gas consumption as well as the applicable sales tax. “This has enhanced the withholding tax limit from 4%, which is against the interests of industry and consumers,” he said.

Apart from the gas bills, changes had been made in electricity bills as well. The government would continue to receive withholding tax on the power bills, but now it would not be adjustable, Paracha said.He asked the government to resolve the outstanding issues being faced by the CNG sector so that it could play its due role in national development.

Published in The Express Tribune, May 31^st, 2017.

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