ISLAMABAD: Compressed Natural Gas (CNG) will soon become more expensive with the price increase expected to go up between Rs6 to Rs9 per kg after additional taxes are proposed on Liquefied Natural Gas (LNG) in the budget 2021-22.
A letter to Prime Minister Imran Khan was also written by the All Pakistan CNG Association (APCNGA).
The association argued that the imposition of new and additional taxes of LNG will increase the price of CNG from Rs6 to Rs9 in various regions, where LNG is measure as per litre. The government has proposed an increase in general sales tax on the RLNG. This will close down hundreds of CNG stations and leave hundreds of thousands of employees jobless, the APCNGA states.
Levying on gas development surcharge and increasing other taxes will hurt the gas sector, hurt investment worth hundreds of billions in the CNG sector, and send a negative message, Ghiyas Paracha, a central leader of the APCNGA said, on Saturday.
He said private sector should be allowed to import gas to CNG and other sectors, and relaxation should be given on gas tariff for CNG sector.
The government estimated to collect Rs36 billion under head of gas development surcharge during financial year 2020-21 against the revised estimates of Rs27 billion for the current financial year, while the budgeted target for financial year 2021 was Rs10 billion.
Copyright Business Recorder, 2021
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