KARACHI, Oct 22: The government has been continuously floating its idea to the CNG dealers and station owners to agree on five per cent import duty on CNG related items, but the stakeholders have rejected it, sources in CNG industry told Dawn.

Currently, there is no customs duty and sales tax on the import of CNG kits, cylinders and other related machineries as these items enjoy exemption under SRO-38, which is now expiring on October 31, 2002.

Earlier, there were reports that the government was considering imposing 10 per cent import duty and 15 per cent sales tax on CNG related items from November 1, 2002, following the expiry of SRO-38. However, CNG dealers and station owners are seeking extension in the SRO-38 for the next five years.

The sources said the Ministry of Petroleum officials, in several meetings with the dealers, had been assuring the CNG people of full support. Besides offering support, the ministry officials have been continuously asking the stakeholders to think about the imposition of five per cent import duty instead of 10 per cent.

Chairman, CNG Dealers Association, Abdul Sami Khan, again met officials of the Ministry of Petroleum, Central Board of Revenue and Board of Investment two days ago in Islamabad, and discussed in details the impact on industry in case SRO-38 expires. The government officials had again given patience hearing and promised to consider their problems.

In a statement, Mr Sami said any duties and taxes at the import stage would badly hit the CNG business, and making the investors, who had already invested billions of rupees, bankrupt.