'Budget to bolster CNG industry'

The compressed natural gas industry has termed the 'federal budget 2004-05', as a relieved and industry friendly budget that would help in further growth of CNG sector.
The Chairman of CNG Station Owners Association of Pakistan (CSOAP), Malik Khuda Baksh told Business Recorder, after budget speech of Minister of Finance, Shaukat Aziz on Saturday, that the association will pass-on the relieve given in the budget 2004-05 to its consumers, after assessing the budget document.
The success of Prime Minister Jamali government in achieving all its economic goals are due to continuation of its policies without any change that helped in boosting economy and especially CNG sector, he added.
Malik said the association expects 100 percent growth in CNG sector of the country because of relieves provided in the federal budget.
Currently, 510 CNG stations have been set up with an investment of roughly $255 million and over 550,000 vehicles have so far been converted to CNG throughout the country, Malik said adding that the industry also provides jobs to over 10,000 people.
He appreciated the Central Board of Revenue (CBR) for waiving off the turnover tax of 3 percent, restriction of 'Indemnity Bond' on installation of CNG station and Excise and Customs Installation Certificate.
Waiving off such restrictions on CNG station owners and the investors will further boost our industry, the CSOAP chairman said.
"Presently, we are negotiating various technicalities with six foreign companies based in United States, Canada, New Zealand, Argentine, Italy and the United Kingdom for complete transfer of technology agreement to manufacture CNG equipment in the country," he said adding that "we will take advantage from the budget 2004-05 for the import of heavy machinery to set up a state-of-the-art CNG manufacturing plant through potential foreign and local investors."
The manufacturing plant will produce CNG dispenser, storage facilities and CNG kits, he added.
Malik said the association is eyeing to capture on potential regional market of Bangladesh, Sri Lanka, Iran and Nepal etc, which stand at roughly $8 billion.
He said the proposal to allow withholding tax on commission income of petroleum dealers at the rate of 10 percent, as final tax, is realistic and would not burden our members.