The president has promulgated an ordinance under which the mode of payment of 17 percent sales tax already being charged and collected from CNG station will now be collected through their gas bills by the gas distribution companies.
The Federal Board of Revenue (FBR) in a public notice on Monday clarified that no new tax had been imposed but only the mode of collection had been changed under this ordinance to ensure compliance and facilitate administration of the tax.
The FBR has issued a notification which specifies that the value of CNG for the purpose of charging sales tax is the same as notified by OGRA from time to time.
It further clarified that the rate and amount of sales tax payable on CNG remains the same as already notified by OGRA through its notification dated 17th December, 2013. Thus there will be no change in the consumer price of CNG or the amount of sales tax collected from the consumers. The price of CNG shall remain the same as already notified by OGRA, it added.
