Additional taxes on CNG sector flayed

KARACHI: All Pakistan CNG Association (APCNGA) on Tuesday said the government of Khyber Pakhtunkhwa (KP) had imposed additional taxes on the ailing CNG sector in the budget 2014-14 that would increase the cost of the fuel and discourage investors.

KP government has slapped tax up to Rs 15,000 on owners of CNG filling stations and petrol pumps while another tax of Rs 5000 per year have been imposed for using generators during the electricity load shedding which is discrimination, said Pervaiz Khan Khattak, Central Chairman APCNGA.

He said this while speaking at a hurriedly called meeting of the executive body of the association. Provincial Chairman Fayaz Ahmed Khan, Provincial Vice Chairman Minhajuddin, Khalique-ur-Rehman and others were also present on the occasion.

Khattak said that the KP government had discouraged the business community of the terror-affected province which was providing jobs in most difficult circumstances as no other province had slapped any new tax on the limping CNG sector.

He said that CNG sector had already been paying fees, income tax and sales tax while buying natural gas at highest price; it could not bear any additional burden which would compel us to upward revise prices of the commodity.

Extraordinary hike in gas infrastructure development surcharge in the federal budget will have a negative impact on all the gas consuming sectors, he said, adding that additional taxes and double taxation would destroy the CNG sector.

Khattak said that government has been collecting over 26 per cent Sales Tax from CNG outlets despite the directives of the Supreme Court to collect 17 per cent Sales Tax.

He said that government has been collecting double taxes while KP has also imposed two new taxes which will be impossible for CNG owners to absorb forcing them to revise prices.

Rejecting struggle to provide cover to illegal sales and income taxes in the budget, he said that we would be left with no option but to seek intervention by courts if the KP government did not reversed new taxes.

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