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Call to reduce customs duty, income tax on local gas from 4pc to 2pc

Call to reduce customs duty, income tax on local gas from 4pc to 2pc

LAHORE: The government should bring down income tax on local gas from 4pc to 2pc; reduce general sales tax from 17pc to 10pc; decrease customs duty on CNG kits & cylinders, and abolish 5pc duty on RLNG import.

The All Pakistan Compressed Natural Gas Association (APCNGA) has urged the government to rescue the CNG sector, which is currently faced with severe liquidity constraints due to coronavirus-led economic slowdown.

On Thursday, APCNGA Central Chairman Ghiyas Abdullah informed that despite operating during the lockdown period to provide services to the vehicles performing emergency duties, the CNG stations couldn’t even meet their operational expenses due to low sales and limited movement of both private and public transport.  “Unfortunately, the CNG sector was given no concession on account of power and gas utility bills,” he lamented, adding that the recent plunge in petroleum prices also affected the sector’s sales.

Paracha informed that the association had held many talks with different departments and ministries in the past, “but each time it failed to get any relief”.

In its budgetary proposals for 2020-21, he said, the association had requested the government to bring down income tax on local gas from 4pc to 2pc; reduce general sales tax from 17pc to 10pc; decrease customs duty on CNG kits & cylinders, and abolish 5pc duty on RLNG import.

He hoped that the government would sympathetically consider the association’s proposals and would help revive the CNG sector. He maintained that CNG was a cost-effective and environment-friendly fuel in comparison to other petroleum products.