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CNG station owners in KP seek gas tariff relief

National

May 4, 2020

PESHAWAR: The CNG owners and dealers have urged the federal government and Prime Minister Imran Khan to announce a special gas tariff relief for the CNG sector which has been hit hard by the lockdown caused by the coronavirus pandemic.

They said the CNG is a prime source of employment for many people and a huge contribution to the exchequer on account of various taxes and asked the government to take steps to help this important sector survive.

The demand was made during a joint meeting of representatives of CNG Station Owners Associations, office-bearers and dealers at the Chamber’s House on Sunday. Sarhad Chamber of Commerce and Industry President Maqsood Anwar Pervaiz chaired the meeting.

All Pakistan CNG Owners Association Central Chairman, Ghayus Abdulllah Paracha, the APCNG KP Chairman Fazal Muqeem, All Pakistan Real CNG Owners Association Chairman, Hamad Khan, Pervaiz Khan Khattak, Khalilur Rehman, Badshah Wazir, Elafullah, Gulab Khan, Muhammad Zareef, Sikandar Khan, Minhajuddin, Bakhtiyar, Amjad Khan, Alam Khan, M Fahad Ashraf Khan along with people associated with the CNG sector attended the meeting. The participants demanded a reduction in gas tariff to rupees 780 per MMBUTU (special gas tariff) for CNG sector in Khyber Pakhtunkhwa and rest parts of the country.

They believed the cut would result in good parity the CNG and petrol. The participants asked for charging 17 percent sales tax 4 percent income tax exemption as well. The meeting called to charge electricity tariff on general industrial tariff and allow payment of upcoming month gas bill in four equal installments to rescue the CNG industry in wake of coronavirus pandemic.

The speakers said the special relief financial package will not only prevent the CNG industry from a further decline or closure but it will also maintain parity between CNG and petrol. The participants said 1238 per MMBTU is currently being charged and it should be reduced to 780 per MMBTU because the present rate is very high as compared to other industries.

They pointed out that the petroleum prices are gradually decreasing in the global market so it is essential to maintain good parity between CNG and petrol under the prevailing scenario. The SCCI chief said CNG is an environment-friendly sector and very support in eradication of environmental pollution. He said CNG stations, CNG plants, cylinder makers are attached with this important sector, arguing that the tax-revenue will increase with enhancement of CNG sale.