Leaders of All-Pakistan CNG Association, NWFP chapter, announced this at a press conference here on Wednesday.
The closure of about 68 gas stations caused problems for owners of about 15,000 CNG vehicles, who switched over to petrol to cope with the situation.
Some pick-ups offering transportation service to the people of adjoining rural areas remained off the roads because of the non-availability of natural gas.
Ikhtiar Wali Khan, Provincial President of the Association, flanked by other office-bearers, termed the one per cent tax on total gas bills of the CNG stations, illegal and discriminatory.
He said the tax actually came at 12 per cent annually on the total gas bills of a station despite the fact that owners were already paying 24 per cent sales tax on the bills.
He said legally the district government could not impose tax on services being provided by a federal agency and there was no such precedent in any other district of the country.
Mr Khan claimed that the CNG station owners were already paying 12 different taxes to federal, provincial and district governments and they were not in a position to pay more. He, however, did not give details of those taxes.
He announced that they would not pay the tax and would continue their strike until the tax was withdrawn.
He accused the district government of deliberately violating the bye-laws which regulated the CNG business and ensure safety of people.
He said the move was the brainchild of district Nazim Haji Ghulam Ali who allegedly wanted to give favour to his businessmen friends. He said the bye-laws spelling out the distance between two CNG stations were crystal clear but the Nazim was ignoring them and allowing unchecked opening of stations in the city.
He said the mushroom growth of gas stations in the city posed a serious threat to lives of consumers besides being detrimental to the whole sector.
Mr Khan said that owing to installation of sub-standard cylinders, at least four explosions had occurred in Peshawar, Mardan and Nowshera over the past one year.
District Nazim Haji Ghulam Ali, when contacted, told Dawn that the district government would not withdraw the new tax, adding that owners of CNG stations were earning millions of rupees monthly, but they were not ready to contribute their bit to the development of the city.
About safety concerns, the Nazim said: “The district administration will take every possible step in consultation with CNG operators for strict implementation of the bye-laws, but in turn they have to pay the tax.”
Protest called off
THE All-Pakistan CNG Association called off the strike on Wednesday night following the intervention of Chief Minister Akram Khan Durrani.
Ghiyas Paracha, an office-bearer of the association, told Dawn that District Nazim Haji Ghulam Ali held talks with them. A committee was constituted that would prepare its report within 15 days and review the bye-laws and imposition of the new tax.
The Nazim assured the association that action would be taken against the workshops installing sub-standard CNG-kits.