Documentation: FBR to obtain CNG stations list from Ogra

The Federal Board of Revenue (FBR) has approached Oil and Gas Regulatory Authority (Ogra) for obtaining list of all CNG stations for documentation of this sector. Sources told Business Recorder on Wednesday the collection of sales tax from CNG stations would be done by the gas distribution companies under the new mechanism issued in the budget.
In this connection, the FBR has asked the Ogra to give gas connection numbers of CNG stations for onward submission to the Sui Southern Gas Company Limited (SSGCL) and the Sui Northern Gas Pipelines Limited (SNGPL).
The board would provide a format to the gas distribution companies, which would reflect collection of sales tax and income tax from CNG stations. The gas distribution companies would specify sales tax/income tax data collectively on a single document.
However, the CNG collection figures would be reflected in the collection of concerned Collectorate of Sales Tax where the CNG station has been registered.
Under the new arrangement, sales tax leviable on supplies of CNG stations will be collected from gas distribution companies at the rate of 24 percent of value of supply as mentioned in Sales Tax Special Procedures, 2007.
The collectors, Large Taxpayer Units (LTUs) Karachi and Lahore would co-ordinate with both the SSGCL and the SNGPL. This 24 percent includes 15 percent normal sales tax, at present, being charged by gas companies plus 9 percent worked out on the basis of value addition by CNG stations.
The board had considered factors like wastages, input adjustment on account of electricity and other inputs and the prevailing selling prices for levying sales tax on CNG stations.
Sources said the board would obtain a list of CNG stations from Ogra to bring all such stations into the tax net. It has been agreed between Income Tax Wing and CNG dealers that the withholding tax collection will be credited to Regional Tax Offices (RTOs), Lahore and Karachi, that would disseminate data to respective regional department under whose jurisdiction the CNG stations are located. The FBR has issued instructions to the LTUs Karachi and Lahore for proper monitoring of collection of withholding tax from CNG stations.