ISLAMABAD: CNG stations all over the country have raised the prices of alternative fuel by Rs10.50 per kg, subsequent to increase in general sales tax (GST).

The Federal Board of Revenue (FBR), the other day, increased the value of supply to the CNG consumers for the purpose of charging of sales tax from CNG stations by the gas transmission and distribution companies.

Through an SRO1464(l)/2021 issued by the FBR here the other day, for Region-I, the fixed value has been increased from Rs74.04 per kg to Rs134.57 per kg and for Region-II the value has been increased from Rs69.57 per kg to Rs128.11 per kg for the purpose of charging of sales tax. Region-I covers Khyber-Pakhtunkhwa, Balochistan and Potohar Region (Rawalpindi, Islamabad and Gujar Khan) and Region-ll: Sindh and Punjab excluding Potohar Region.

Business community resents hike in fuel prices

All Pakistan CNG Association states that it is unjust that the federal government increased the rate of GST on CNG at a time when LNG spot rates are all time high.

The association maintained that owners of CNG stations ready to pay taxes on the fuel, however, they are disagreed the basic formula of withholding and GST.

The association further said that finance minister in their last meeting assured the members of the association to look into the demand of the CNG station after return from the IMF talk but the government increased the rates without consulting them.

The association is of the view that the raise in the GST on CNG would lead to increase in the fares of public transport and the poor would suffer.

Copyright Business Recorder, 2021