CNG price likely to be increased by Rs9/Kg

The ruling government of Pakistan Tehreek-e-Insaf (PTI) has proposed an increase in general sales tax on Regasified Liquefied Natural Gas (RLNG).

Local media outlet reported that the government has estimated to collect Rs36 billion on account of gas development surcharge during the next FY against the revised estimates of Rs27 billion. However, the budgeted target for FY21 was Rs10 billion.

As per an official, most sectors were provided relief in the recent budget, but the CNG sector was treated discriminatorily.

The concerned authority further added that CNG sector is paying the highest direct taxes and paying full price for LNG and its closure can hit the LNG project worth billions as it is the only sector purchasing LNG without any subsidy or deduction.

Yesterday, former Deputy Chairman Senate and Senator Saleem Mandiwala stated that the federal budget 2021-21 depicts a series of indirect taxes not direct one that lead to an upsurge in the country’s fiscal deficit.

He further added, “The prices of POL will increase in days to come. The government has enhanced taxation on LNG”.

“The country could face further deterioration in its economic health,” he stressed.