FPCCI calls for equal tax on LNG

LAHORE: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Senior Vice President Khawaja Shahzeb Akram on Tuesday called for equal taxation for imported and locally-produced liquefied petroleum gas (LPG) to provide local industry a level playing field.

“The FPCCI is not against the import of LPG. Still, it is against disparities in taxation,” he said while talking to the Pakistan LPG Marketers Association (PLPGMA) delegation at the FPCCI Regional Office Lahore.

LPG imports should continue until local producers meet the demand in full. Local industry was under tremendous pressure against imported LPG — the latter had lower taxation and no regulatory duty. Therefore, the LPG sector needed immediate intervention and assistance from the government, he added.

Out of the total demand of 650,000-700,000 tonnes of LPG per year, the share of the local industry was 60 percent compared to 40 percent imports. The share of imported LPG increases to 40 percent from 30 percent during winters on account of rising demand.

PLPGMA Chairman Farooq Iftikhar has demanded the Oil and Gas Regulatory Authority (OGRA) to take stakeholders on board on the proposed LPG Policy 2021. The regulator is aware that the current fiscal incentives being provided to imports by waiving off regulatory duty and charging a concessionary rate of 10 percent GST have wreaked havoc in the LPG market by the flooding of cheaper products.