ISLAMABAD: Federal Board of Revenue (FBR) Chairman Tariq Bajwa said that the government was charging 17 percent sales tax on supply of CNG to consumers.
He informed the Senate Standing Committee of Finance that the government was charging supply of CNG at the general sales tax rate of 17 percent of value of supply of CNG to consumers instead of charging tax at 17 percent on purchase of gas by a CNG station and an extra sales tax of 9 percent to cover the value addition. Thus, the government has eliminated discrimination between the rates of sales tax on supply of CNG and other products.
During the meeting, Law and Justice Division observed that the President promulgated Sales Tax (Amendment) Ordinance 2014 on applicability of sales tax on CNG stations, which was equivalent to a legislation carried out by the Parliament. A representative of the Law and Justice Division shed light on the importance of the Sales Tax (Amendment) Ordinance 2014 which is at present in vogue. The official of Law Division further read out certain paragraphs of the judgement of the Supreme Court of Pakistan relating to the sales tax on CNG.
Responding to the legality of the Sales Tax (Amendment) Bill 2014, FBR Chairman Tariq Bajwa said the Sales Tax (Amendment) Bill 2014 “is a money bill”. The money bill has been presented in the Parliament for consideration by the National Assembly and Senate, according to him.
