Govt notifies hike in Sales Tax on CNG

ISLAMABAD: The government has issued notification to raise the sales tax rate on the Compressed Natural Gas (CNG), ARY News reported on Sunday.

The CNG consumers would have to pay Rs69.57 per kilo tax on the CNG supply in region-I, while the region-II consumers would have to pay Rs74.04 per KG sales tax, according to the notification.

The government has increased sales tax for Region-1 from existing Rs64.80 to Rs74.04 per kg, whereas for Region-2 from present Rs57.69 to Rs69.57 per kg.

According to Federal Board of Revenue (FBR), the region-I comprises of Khyber Pakhtunkhwa, Balochistan, Rawalpindi, Islamabad and Gujjar Khan.

Sindh, Pothohar region and other parts of Punjab are part of the region-II, the taxation authority said.

The new rates of sales tax on CNG will come into effect from July 1st.

All Pakistan CNG Association (APCNGA) Chairman Ghayas Piracha, commenting over the hike in sales tax rate said that the CNG price will enhance upto 21-22 rupees per kilogram.

Piracha said that the CNG price in Sindh will reach to Rs. 125 per kilogram, which will be between Rs. 137 to 140 in Khyber Pakhtunkhwa province.

He said the hike in the sale tax wouldn’t have much impact in Punjab as imported RLNG is being used in the province, which is more expensive then the CNG.

He criticized the hike in sales tax rate and demanded the government to take back the decision.