Import of CNG compressors, cylinders and kits: FBR proposes withdrawal of concessionary duty rate

The Federal Board of Revenue (FBR) has strongly proposed immediate withdrawal of concessionary rate of customs duty on the import of CNG compressors, cylinders and kits imported by local vehicles assemblers and companies with CNG licenses.
Sources told Business Recorder here on Sunday that the FBR has submitted its viewpoint to the Ministry of Commerce and Ministry of Petroleum regarding recent ban on the import of CNG cylinders and conversion kits. The FBR wanted abolition of concessionary tax regime on the import of CNG compressors, cylinders and conversation kits.
In case the government approves the FBR proposal, the statuary rate of 35 percent customs duty would be applicable to the import of CNG kits. This is only possible through amendment in the Customs SRO 575(1)2006 for withdrawal of concessionary rate of duty on the import of CNG compressors, cylinders and kits. The existing status of ban on the import of CNG kits/cylinders, makes the relevant entries of the SRO 575(1)/2006 pertaining to concessionary rate of duty on these items irrelevant.
Details revealed that discouraging conversion of vehicles to CNG, Ministry of Petroleum & Natural Resources (Directorate General Gas) had moved a Summary to the ECC proposing a complete ban on company fitted CNG cylinders/kits in locally manufactured vehicles. Secondly, Moratorium on import of CNG cylinders and conversion kits should be imposed except where letters of credit have been established, prior to approval of this summary. Moreover, the CNG-fitted public transport ie buses/vans be exempted from the moratorium.