ISLAMABAD: The owners of compressed natural gas (CNG) stations have expressed concerns over collection of ‘higher’ sales and income taxes from the industry.
The representative of people related to CNG business said that due to these taxes the industry cannot be run smoothly.
All Pakistan CNG Association President Ghiyas Abdullah Paracha, in a statement, alleged that Federal Board of Revenue (FBR) has been ‘illegally’ collecting enhanced sales tax and income tax from the CNG industry. He said that a delay in addressing the tax issue would exacerbate problems for all stakeholders and, therefore, it must be resolved on a priority basis.
Paracha said that the Supreme Court had directed the government to slash sales tax on the CNG industry from 26% to 17%, but it was not followed. Rather, a deceptive formula was introduced that showed sales tax at 17% but its impact on CNG station operators was not less than 32%.
Citing examples, Paracha stressed that some sectors had been exempted from taxes while others were getting relief in one form or other, but the CNG industry that paid taxes in advance was being pushed to the wall.
