Tax in budget: CNG Price to go up to Rs 9 per liter

Islamabad: The price of CNG is set to go up to Rs 9 per liter following the imposition of imposing an additional tax on LNG in the budget.

The government has proposed an increase in general sales tax (GST) 12 to 17 percent on RLNG.

The All Pakistan CNG Association (APCNGA) on Thursday said the imposition of new and additional taxes of LNG will increase the price of CNG from Rs6 to Rs9.

The move will result in the closure of hundreds of CNG stations leaving hundreds of thousands of employees jobless, it said.

 Impositions of Gas Development Surcharge (GDS) and increasing other taxes will hurt the gas sector, lay waste to investment worth hundreds of billions in the CNG sector and send a negative message, said Ghiyas Abdullah Paracha, central leader of APCNGA.

He said that Government is providing affordable energy to many sectors with a focus on the export industry to boost exports but the reduction in import bills is also necessary to reduce the trade gap for which promotion of CNG is necessary.

Ghiyas Paracha noted that almost all the sectors were provided relief in the recent budget but the CNG sector was subjected to harsh treatment.

Reduced petroleum levy is promoting the usage of petrol and diesel while CNG is paying for this policy and a further hike in CNG price will be devastating, he observed.

CNG sector is paying the highest direct taxes and paying full price for LNG and its closure can hit the LNG project worth billions as CNG is the only sector buying LNG without any subsidy or discount.

Closure of the CNG sector will increase pollution, jack up fares of public transport, increase the oil import bill and budget deficit, he said.

Ghiyas Paracha said that petroleum prices are increasing in the international market, therefore, the decision which can lead to the closure of the sector providing economical and environmentally-friendly fuel should be reconsidered.

He said that the decision to introduce new taxes and increasing existing taxes should be reversed or the CNG sector should be given local gas at subsidized rates.