KARACHI: The Federal Board of Revenue (FBR) has decided to recover outstanding amount of Rs2 billion from the owners of CNG stations, which are paying lower sales tax after deregulation of prices a year ago.
According to an FBR official, the government had deregulated the CNG prices on December 21, 2016 and allowed the concerned association of CNG stations to determine the price for consumers,”
“Earlier, the prices were regulated by Oil and Gas Regulatory Authority (OGRA) and the consumer price, determined by the regulator, was linked with the collection of sales tax from CNG stations,” the official said, adding that the sales tax was linked with OGRA rates on March 31, 2014 through SRO 236(I)/2014 and the last value of the sale price notified by the regulator was Rs67 per kilogramme for CNG stations, which remained applicable till the date of deregulation.
“However, following the deregulation, the sale price of natural gas has increased to Rs77 and the enhanced amount escaped from the implementation of sales tax,” the official said. The source added that the FBR would send draft amendment to the parliament for approval as the revenue body could not amend the law through statutory regulatory orders (SROs).
The CNG sector pays sales tax at 17 percent on the differential value of price received from gas utility and the sale price for consumers.
