APCNGA opposes increased taxes on LNG for CNG sector

KARACHI: The All Pakistan CNG Association (APCNGA) on Wednesday sought reversal of proposal of the government to increase customs duty on the import of LNG terming it against the interests of consumers.


The hike in taxes and duties will increase the price of LNG by Rs6 per litre which will reduce its consumption, increase transportation cost, hit environment and boost oil import bill, it said.

The CNG sector cannot bear the burden of increased taxes on LNG proposed in the budget, said Ghiyas Paracha, central leader of APCNGA while speaking to an urgent meeting of the body’s core committee.


The government has proposed five percent customs duty and ten percent federal excise duty on import of LNG which will add to the problems of CNG operators, he said.

Ghiyas Paracha said that revised customs duty will increase the price of per litre fuel by Rs3.5, sales tax will result in hike of Rs2 while the impact of FED will be 20 paisa.

He said that the CNG sector is already paying the highest taxes and it is not opposed to an increased tax on import of LNG for other sectors except for the CNG sector.

The leader of the CNG sector said that the formula of paying withholding tax and sales tax should be made comprehensible while Gas Infrastructure development Cess should be abolished for the CNG sector.

The proposed taxes, if implemented, will damage the CNG sector, leave hundreds of thousands unemployed and lay waste to the investment of 4.5 trillion rupees, he warned.

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