KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Nasser Hyatt Magoo on Tuesday called for equal taxation for imported and locally-produced Liquefied Petroleum Gas (LPG) to provide local industry a level playing field.
The FPCCI is not against the import of LPG but it is against disparities in taxation, he said while speaking at the first meeting of FPCCI’s Standing Committee on LPG. LPG imports should continue until local producers can meet the demand in full, he added.
“Business acumen says the share of imported LPG is bound to increase in Pakistan under current circumstances,” Mr Magoo said while asking the LPG stakeholders to inform the Federal Board of Revenue’s Anomaly Committee of the demand for equal taxation. Large oil refineries producing LPG in Pakistan should also raise their voice and support their distributors, he said.
FPCCI Standing Committee on LPG’s convener Muhammad Ali Haider said the local industry was under tremendous pressure against imported LPG — the latter has lower taxation and no regulatory duty (RD). The LPG sector needs immediate intervention and assistance from the government, he added.
Out of the total demand of 650,000-700,000 tonnes of LPG per year, the share of local industry is 60 per cent as compared to 40pc imports. The share of imported LPG increases to 40 per cent from 30pc during winters on account of rising demand.
The FPCCI demanded a new LPG Policy 2021 and stressed that it should be approved by the government to update the policy framework for LPG sales in the country.
Published in Dawn, July 7th, 2021