ISLAMABAD, June 14: The CNG Association of the federal capital has demanded of the government to immediately withdraw six per cent withholding tax on compressed natural gas (CNG), imposed in the budget 2007-08.

The demand was made in the association’s meeting with the officials of the ICCI, here on Thursday.

The ICCI president, Nasir Khan, in a statement said the levy would ruin the industry, which was not only providing environment-friendly fuel but at the same time providing consumers with great relief.

He said if the government brought the price of CNG at par with diesel and petrol, CNG vehicle manufacturers and CNG dealers would be adversely affected.

Pakistan is the largest CNG consumer in Asia and the third in the world. Here in Pakistan, 1,460 CNG Stations are functional and approximately one thousand are under construction, he added.

Mr Khan said by implementing a 6 per cent withholding tax, this industry would be affected. That was why this decision should be instantly taken back by the government.

The ICCI president advised the association not to observe a strike because that was not a proper solution to the problem, which should be resolved by discussion.

Members of the CNG Association, said CNG stations were contributing around Rs68 billion to the national exchequer and at the same time had substituted over 168 million litres of petrol for the collective benefit of the government and the people of Pakistan.