Talking to Dawn, APCNGA Chairman said the cess should be imposed on equitable basis but it was higher for the CNG.

ISLAMABAD: The government has imposed an unusual general sales tax on the recently introduced Gas Infrastructure Development Cess raising the compressed natural gas (CNG) prices by Rs1.06 to Rs75.35 per kg in the Potohar region.

While the increase for Khyber Pakhtunkhwa, Balochistan and the Potohar region is Rs1.06.

The increase for these areas is higher as Rs4.50 per kg cess was imposed in this region compared to Rs2.32 in the Region–II.

Meanwhile, the All Pakistan CNG Association (APCNGA) has criticised the FBR for imposing tax on the tax and demanded the government to take the decision back.

APCNGA Chairman Ghayas Paracha said, “Imposition of cess on CNG was unjustified as it is the fuel of middle class, now the government has imposed tax on cess which means a tax on tax.”

“We demand the FBR to take the levy back,” he said adding the APCNGA has also approached the FBR for the refund of GST on cess sent in the bills to the CNG stations by the Sui Southern Gas Company and the Sui Northern Gas Pipelines.

“On one hand the petroleum ministry has told us that this was a tax to be passed on to the consumers but on the other hand the SNGPL and the SSGC have already collected through the bills,” Mr Paracha said.

Meanwhile the petroleum ministry official said that the infrastructure cess has been imposed on all the sectors but only the CNG was opposing it.

Talking to Dawn , APCNGA Chairman said the cess should be imposed on equitable basis but it was higher for the CNG.

“After the cess, gas tariff for urea sector is around Rs300 per MMBTU, for the industries it is Rs507 per MMBTU,” he said adding, “With the limited imposition of cess the tarriff for CNG reached to Rs742 per MMBTU (million British Thermal Unit), which is the highest among all sectors.