LPG Distributors Welfare Association Chairman, Hadi Khan has urged the government to abolish 6 percent withholding tax and 15 percent sales tax on imported liquid petroleum gas (LPG) to reduce difference in prices between locally produced and imported LPG.
Talking to newsmen on Tuesday, he said at present locally produced LPG cost was Rs 34,349 per tonne whereas the imported LPG cost Rs 47,000 to Rs 50,000 per tonne.
He said that at present there was a difference of around Rs 12,000 per tonne between imported and locally produced LPG prices. He said that by abolishing 15 percent GST and 6 percent withholding tax the difference between imported and locally produced LPG prices would come down to Rs 2,761 per tonne.
He said that import of LPG would increase if the government accepted their suggestion and added that with the increase on LPG import its prices in local market would go down.
He said that there were around 50 million LPG users in the country and reduction in pries would defiantly benefit them. The chairman said that Pakistan was facing around 8000 to 14,000 tonne shortage of LPG despite importing around 4000 to 5000 tonnes per month.
This shortage could be met out only by increasing local production or by increasing its import. He said that during 2006 around 34,503 tonnes LPG was imported, whereas in January 1 to 16, 2007 a total of 9503 tonne LPG was imported.
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