ISLAMABAD: The Compressed Natural Gas (CNG) industry has demanded the government to withdraw the 17 per cent General Sales Tax (GST) on the Liquefied Natural Gas (LNG) sector besides allowing the private sector to bring LNG to the country in order to meet energy needs.
According to details, an emergency meeting of the central body of All Pakistan CNG Association (APCNG) was called on Sunday to discuss the effects of GST on LNG, especially on the CNG sector and how to get rid from the problems being faced after the increase in GST on LNG price.
Sharing details of the meeting, Ghias Abdullah Paracha, a senior leader of APCNGA, said that the meeting discussed if CNG stations should be opened or not after the imposition of the new tax on the sale of LNG.
Similarly, the meeting discussed that CNG stations should pass on the whole effect of increase in GST on LNG price to the consumers or not.
Furthermore, it was also discussed that price of CNG can be increased by Rs30 per kilogramme or Rs18 per litre with effect to the GST on LNG and import of expansive LNG. It was decided to approach the government to get resolve the matter.
Paracha, while hinting closure of CNG stations, made it clear that the filling stations cannot sell CNG on the new price after the imposition of such a heavy GST.
On behalf of the sector, he demanded from the government to give the same subsidy to the sector which the government is giving to other sectors. He also said that if the government is not willing to give them a subsidy then it should allow the private sector to import LNG so that stations can sell the gas at low price than petrol.
Warning the closure of all 3000 of Pakistan’s CNG stations in next few days in case the government does not pay due heed to their demands, Paracha said that closures will affect 20 lakh vehicles while employment of four lakh persons affiliated with the business will be in serious danger.
