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17pc ST on CNG sector: Govt promulgates ordinance

17pc ST on CNG sector: Govt promulgates ordinance

ISLAMABAD: In compliance with the Supreme Court verdict, the government has promulgated Sales Tax Amendment Ordinance to charge 17 percent sales tax, covering net ‘value addition’ tax on Compressed Natural Gas (CNG) stations on the basis of sale price fixed by Oil and Gas Regulatory Authority (Ogra).

According to details, the FBR has issued Sales Tax Amendment Ordinance, 2014 to amend the sales tax law in line with the apex court directives. The FBR promulgated the ordinance to charge 17 percent sales tax from the CNG sector on the basis of sales value addition tax covering value addition. The board has attempted to ensure that the net value addition should not increase without causing revenue loss to the national exchequer.

The Federal Board of Revenue will issue directives to the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) about mechanism for the collection of sales tax as per Sales Tax Amendment Ordinance, 2014.