The All Pakistan CNG Association (APCNGA) has rejected increased taxes slapped on the CNG sector in the budget 2017-18 and called for its immediate reversal. Talking to Business Recorder on telephone, Central Chairman(APCNGA Ghiyas Abdullah Paracha said that there are more than three thousand CNG outlets with an investment of Rs 450 billion across the country and they are already providing more revenue to the government than other sectors.
He said tax on the CNG outlets have been increased which will result in problems for the CNG operators and masses therefore, government should review its decision and retract the move, CNG station owners continued to pay four percent withholding tax and 26 percent sales tax on the amount of gas consumed, he added.
Ghiyas Paracha said now the method to calculate withholding tax has been changed and it is being imposed on the amount of consumed gas and the sales tax applicable on it. This has enhanced the limit of withholding tax from four percent which is against the interests of industry and the consumers therefore it was not acceptable to the CNG sector" he said.
Paracha said that apart from the gas bills, changes have been made in the electricity bills. The Government will continue to get withholding tax on power bills but now it will not be adjustable. He asked the government to resolve the outstanding issues of the CNG sector so that it can play its due role in national development with peace of mind.