KARACHI: The government is distributing sales tax collected on petroleum products among the provinces, a senior official said on Tuesday.
Senior Executive Director Zainul Abidien Qureshi of the Oil and Gas Regulatory Authority (Ogra) refuted the impression that the federal government keeps the revenue collected in the shape of sales tax on petroleum, oil and lubricants products.
Qureshi, at a meeting with office bearers of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the role of the authority is limited and it could only regulate the prices. “The authority is only implementing the policies formulated by the government,” he added.
The Ogra’s executive rejected the objections raised by businessmen that the federal government did not pass on the actual decline in international oil prices.
He said Pakistan has lower oil prices when compared with other regional economies, including India, Bangladesh and Sri Lanka.
The FPCCI’s office bearers raised issues regarding prices, liquefied natural gas mix and gas infrastructure cess. They protested against the malpractices of oil marketing companies.
A business leader said the final solution of such issues is to de-regulate the oil prices.
Representatives of compressed natural gas stations said that they were subject to high prices in Karachi whereas the gas was supplied at much lower rates in the Punjab.
Amir Mumtaz, general manager of the Sui Southern Gas Company said the company has no mandate for the price determination.