KARACHI: LPG Distributors Association in their budget proposals has recommended withdrawing general sales tax (GST) and advance tax on LPG imports.
Chairman LPG Distributors Association Irfan Khokhar said government should remove GST and advance tax of 5.5 percent on LPG import and distributors’ profit should be fixed at least 20 percent.
Khokhar said in 2016-17 Pakistan’s local LPG production would increase by 800 metric tons while imports would rise to 0.4 million tons.
He said 40 percent of the total LPG demand was met through imports and if such high taxes were not removed, LPG import would not be feasible. He predicted that LPG price would surge to Rs200/KG, if concessions were not accorded to this commodity’s import.
“LPG should be promoted similar to liquefied natural gas. In the last few years LPG has proved to be the cheapest fuel,” he said.