ISLAMABAD: The Senate Standing Committee on Finance and Revenue will discuss the levy of additional sales tax on CNG Industry today (Friday). Member Federal Board of Revenue (FBR) Inland Revenue-Policy Rehmatullah Khan Wazir will defend the levy of said sales tax on CNG industry.
Government levied sales tax on CNG industry through a presidential order promulgating Sales Tax Amendment Ordinance, 2014. As per the ordinance, the rate of sales tax was imposed at 17 percent, covering net “value addition” tax on CNG stations on the basis of sale price fixed by the Oil and Gas Regulatory Authority (Ogra).
In December last year, the CNG stations decided to pass on the burden of outstanding sales tax payment to the tune of Rs 4.1 billion to general public. The CNG industry also announced to increase the prices of CNG in order to cover up those outstanding which had already been charged on the sale of natural gas through their outlets
A well-placed official source at FBR told Customs Today that standing committee had sought briefing from the FBR along with reasons for the imposition of said sales tax on CNG industry along with possible impacts on the industry as well as CNG consumers.
In this regard, the source said that Inland Revenue departments had prepared answers of the possible questions likely to be asked by the members of the committee due course of discussion on the said matter.
Moreover, the source said that committee would also get a briefing from the Finance Ministry about working paper submitted by the Competition Commission of Pakistan regarding amendments in the Competition Commission Act along with possible response of the ministry to the said working paper.
In December 2015, the source added that the CCP recommended to the federal and provincial governments to amend the registration laws for firms to minimise potential risk of deceptive marketing.
In this regard CCP sought suitable amendments in their territorial jurisdictions of the provincial and federal governments with regard to the Partnership Act, 1932, the Societies Registration Act, 1860, the Voluntary Social Welfare Agencies (Registration & Control) Ordinance, 1961, the Trusts Act, 1882 and the Co-operative Societies Act, 1925 so as to bar registration of potentially deceptive firm names with an aim to minimising the potential for deceptive marketing.
The Senate Committee will also discuss the 1stQuarterly report of the State Bank of Pakistan on state of national economy in today’s meeting because the report had shown some concerns on lower growth in tax collection, lower paced privatisation process of loss making state owned enterprises, dwindling exports as well as unsatisfactory state of foreign direct investment (FDI).
The agenda for the said meeting of the committee also reveals that committee will also discuss the issue of borrowings from World Bank and Asian Development Bank to the non governmental organizations working in Balochistan.
