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Tuesday July 23, 2024

PLMA rejects tax hike, urges review

By Our Correspondent
June 14, 2024
This image taken on January 31, 2024, shows gas cylinders outside a shop in Karachis Gulshan-e-Iqbal area. — reporter
This image taken on January 31, 2024, shows gas cylinders outside a shop in Karachi's Gulshan-e-Iqbal area. — reporter

ISLAMABAD: The Pakistan LPG Market Association (PLMA) has vehemently rejected the tax hikes proposed in the budget.

The association has called the government to reconsider the significant increase in petroleum development levy (PDL) and the new 18 per cent general sales tax (GST) on imported liquefied petroleum gas (LPG). Vice Chairperson of the PLMA Muhammad Ali Haider says that these measures pose a severe threat to both industry and consumers.

The recent tax memorandum for 2024-2025 has outlined a sharp rise in petroleum levy on locally produced LPG from Rs4,669 per metric tonne to a new minimum of Rs30,000 per metric ton. Additionally, the government has imposed an 18 per cent GST on imported LPG, which constitutes approximately 65 per cent of the market supply. These increases are set to push LPG prices to around Rs30 per kilogram, affecting millions of households and industrial users nationwide.

The PLMA, representing a broad coalition of LPG producers, distributors, and retailers, has warned that the resultant escalated costs could cripple the local LPG sector. The association emphasizes that thousands of jobs are at risk and that millions of consumers will bear the brunt of higher prices, particularly the most vulnerable households.

“These fiscal measures could stifle the growth of the LPG industry and lead to severe inflationary pressures. It is crucial for the government to reconsider these hikes to protect the livelihoods of thousands of employees and the financial well-being of millions of consumers,” according to the PLMA.

The association is urging the government to review and roll back the increases in both petroleum levy and GST to ensure the sustainability of the industry and to prevent undue financial hardship on consumers.The PLMA is calling for dialogue with policymakers to find a balanced solution that supports economic stability while addressing fiscal needs.