FPCCI demands equal tax on LPG

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded equal taxation for imported and locally-produced LPG to provide the industry with a level-playing field, and urged large oil refineries to also raise their voice in support of their distributors.

FPCCI President Mian Nasser Hyatt Maggo said that FPCCI was not against LPG import, but, against disparities in taxation. He was speaking at the first meeting of FPCCI’s Standing Committee on LPG.

“LPG imports should continue until local producers can meet the demand in full,” he said, adding that the share of imported LPG would increase in Pakistan under current circumstances.

He advised representatives of the LPG sector to write a letter to the Federal Board of Revenue (FBR) anomaly committee to demand equal taxation.

Muhammad Ali Haider, Convener of FPCCI’s Standing Committee on LPG, said the local industry was under tremendous pressure against imported LPG, as they have lower taxation and no regulatory duty was applied on them.

“Share of imported LPG increases to 40 percent from 30 percent during winters as the demand rises; therefore, LPG sector needs immediate intervention and assistance from the government,” he said. FPCCI also demanded for LPG Policy 2021 to update the framework for LPG sales in the country to reflect prevalent ground realities.