Government urged to withdraw 30 percent tax on LPG

12 Jun, 2007

Chairman Pakistan LPG Distributors Association Abdul Hadi Khan has urged the government to withdraw 30 percent tax imposed on LPG as it is too high and is causing fast decline in consumption of this cheaper fuel. He also urged the government not to link the price of liquefied petroleum gas (LPG) with that of the international market.
He made these demands while addressing a press conference at a local hotel here on Monday. Secretary General Lahore Abdullah, Senior Vice-President Lahore Sale Point Atta Khan, Secretary Information Sale Point Saif Jan and President Rickshaw Dealers Association Haji Baghi Khan were also present on this occasion. Abdul Hadi Khan said that the government should ensure installation of LPG pumps across the country so as to make filling process of gas easy and safe for the public.
He was of the view that LPG was being produced locally, therefore, its price should not be linked with the international market. He said due to present price mechanism, gas prices were increasing every month. He also said that there was 15 percent sales tax, five percent excise duty and six percent income tax on LPG, and if these taxes are abolished and price mechanism is changed, ie prices are not linked with international market, the price of LPG would come down to Rs 25 per kg. He said that soaring prices had not only created trouble for the consumers but also for marketing companies and the distributors.

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