Pakistan approves hike in gas tariff

ISLAMABAD: The caretaker government on Wednesday conceded to the conditions of the International Monetary Fund (IMF), resulting in a notable increase in gas tariffs across Pakistan, ARY News reported.

According to reliable sources, there will be a Rs 100 per mmbtu increase for protected consumers, while non-protected consumers will experience a more substantial hike of Rs 300 per mmbtu.

Similarly, commercial consumers of gas will face a considerable Rs 900 increase in prices per mmbtu, as per the sources.

The CNG sector is also not exempt from this adjustment, with sources indicating a significant Rs 170 per mmbtu price hike. Furthermore, fertilizer factories will experience a slight increase in gas tariffs.

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Earlier in the day, the ECC of the Cabinet approved a hike in sales tax proposal for vehicles manufactured and assembled in Pakistan.

An ECC meeting of the cabinet was held in Islamabad in which the Federal Board of Revenue (FBR) proposed an increase in sales tax for auto sector manufacturing and assembling vehicles at the local level.

After a detailed discussion, the ECC cabinet approved the process for determining the 25 percent sales tax rate on locally manufactured and assembled vehicles.

Under this approved proposal, a sales tax of 25 percent will be levied on vehicles worth Rs four million or with 1400cc engines, meanwhile, the same tax imposition is expected to continue in the upcoming budget.

The imposition of a 25 percent sales tax on 1400cc vehicles is likely to result in a price hike.