Removal of additional levies on LNG demanded

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and All Pakistan CNG Association have urged the government to reverse the decision to impose 17 percent sales tax and five percent customs duty on LNG, as it threatened businesses.

FPCCI President Mian Nasser Hyatt Maggo on Monday said the sales tax on LNG for CNG sector has been increased from five percent to 17 percent, while customs duty of five percent has also been imposed. “Given that CNG is expensive and the survival of this business is in jeopardy. This decision should be reversed immediately,” he asked.

Maggo said the gas crisis was being caused by poor management, bad decision-making, and lack of vision. “After Sindh, gas is being cut off across the country, which is unacceptable. This will cause huge losses to the business community and the public alike; affecting businesses and reducing production and exports,” he added.

Addressing an emergency press conference, FPCCI’s president said that the entire country was in the grip of energy crisis due to the badly-timed import of LNG and CNG sector. “It was the worst time to go for yearly repair and maintenance of the LNG terminal.”

As a result, it has been decided to generate electricity from furnace oil, which is an expensive option. The government neither imports gas itself, nor allows the CNG sector to import, he said while questioning the soundness of the decision.

All Pakistan CNG Association Group Leader Ghiyas Abdullah Paracha said that the policies of the energy sector were not in line with the ground realities. “The crisis will continue until the CNG sector is allowed to import its own gas,” he said.

Gas companies were destroying people’s businesses and taking away jobs. “If we import our own gas, load shedding will end and the government will generate Rs82 billion, but, this is not acceptable to a few bureaucrats.”

He further added that the CNG sector in Punjab and Sindh was using imported gas, and so had nothing to do with the reduction in domestic gas production, nor did it have any justification to cut off gas.

All Pakistan CNG Association Chairman Khalid Latif said that Rs450 billion have been invested in the CNG sector, but, the future remained bleak. Hundreds of thousands of workers have been displaced from the CNG sector, which has been brought to the brink of disaster.

FPCCI demanded the government to rehabilitate the sector by revoking the decision to impose additional taxes and ensuring the availability of environmentally friendly and cheap fuel to the people, so that, pollution and fares do not increase and millions of jobs can be saved.