Govt urged to seek LPG body’s input

Companies say decisions should not be taken without consulting stakeholders

LAHORE:

Undue facilitation for imports and ignorance of local Liquefied Petroleum Gas (LPG) marketing companies would put investment of billions and employment of thousands of people at stake, therefore, the Ministry of Energy should not take any decision without taking stakeholders on board.

These were the remarks in a letter written to the Ministry of Energy by the Pakistan LPG Marketers Association (PLPGMA). The association chairman said that a committee constituted by the Cabinet Committee of Energy has called a meeting to discuss measures to facilitate import of LPG by both public and private sector companies.

These measures include complete elimination of GST (general sales tax) on imports by public sector companies and reduction of GST from 10% to 2.5% on imports done by the private sector, reduction of income tax on import of LPG by both public and private sector companies and elimination of tax on the profit earned by all importers.

He stated that no input or consultation has been sought from the LPG marketing companies including the PLPGMA which is the registered trade body representing interests of all Ogra licensed LPG marketing companies.

“There is already a discrepancy in taxation and duties applicable on locally produced LPG versus imports, where the former is subject to 17% GST and a petroleum levy of Rs4,669 per MT, however, the latter enjoys a lower rate of GST at 10% and zero regulatory duty,” he added.

Published in The Express Tribune, July 1^st, 2020.

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