The All Pakistan CNG Association (APCNGA) rejected additional taxes imposed on the troubled CNG sector in the fiscal budget 2014-15 presented on Tuesday.
In a statement issued on Tuesday, APCNGA Central Chairman Pervaiz Khan Khattak said that additional taxes and double taxation will destroy the limping CNG sector.
He said the government had been collecting over 26 percent sales tax from CNG outlets against the Supreme Court directives of collection of 17 percent sales tax. Pervaiz Khan said the government had been collecting double taxes which will have an impact of Rs 3 per kg which will be impossible for CNG owners to absorb. In this scenario an upward revision in the price of CNG has become imperative, said Khattak.
He rejected efforts to provide cover to illegal sales and income taxes in the budget.
Pervaiz Khattak said why prices had been increased when the commodity was not available for the masses. Price hike could be justified if supply of natural gas was increased to the CNG outlets, he added.
He said if government wanted to revise taxes as compare to other sectors, it should augment supply of natural gas to the sector.