Lahore: The All Pakistan CNG Association (APCNGA) on Tuesday said the government of Khyber Pakhtunkhwa (KP) has imposed additional taxes on the ailing CNG sector in the budget 2014-14 that will increase the cost of the fuel and discourage investors.
KP government has slapped tax up to Rs 15000 on owners of CNG filling stations and petrol pumps while another tax of Rs 5000 per year have been imposed for using generators during the electricity loadshedding which is discrimination, said Pervaiz Khan Khattak, Central Chairman APCNGA.
He said this while speaking to hurriedly called meeting of the executive body of the association. Provincial Chairman Fayaz Ahmed Khan, Provincial Vice Chairman Minhajuddin, Khalique-ur-Rehman and others were also present on the occasion.
Khattak said that the KP government has discouraged the business community of the terror-affected province which is providing jobs in most difficult circumstances as no other province has slapped any new tax on the limping CNG sector.
He said that CNG sector has already been paying fees, income tax and sales tax while buying natural gas at highest price; it cannot bear any additional burden which will compel us to upward revise prices of the commodity.
Extraordinary hike in Gas Infrastructure Development Surcharge in the federal budget will have a negative impact on all the gas consuming sectors, he said, adding that additional taxes and double taxation will destroy the CNG sector.
Pervaiz Khan Khattak said that government has been collecting over 26 per cent Sales Tax from CNG outlets despite the directives of the Supreme Court to collect 17 per cent Sales Tax.
He said that government has been collecting double taxes while KP has also imposed two new taxes which will be impossible for CNG owners to absorb forcing them to revise prices.
Rejecting struggle to provide cover to illegal sales and income taxes in the budget he said that we would be left with no option but to seek intervention by courts if the KP government did not reversed new taxes.