FPCCI demands withdrawal of taxes, duty on LNG sector

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has criticised the government’s decision to increase the tax and duty rates on the liquefied natural gas (LNG) sector, a statement said on Monday.

Addressing a press conference, FPCCI President Mian Nasser Hyatt Maggo said that not only the sales tax rate on LNG has been increased to 17 per cent from 5 per cent, the government has also levied 5 per cent Customs duty on the commodity.

He demanded the government authorities to immediately withdraw the same. Maggo said that poor management, bad decision-making and the lack of vision were the main reasons behind the gas crisis.

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.

The FPCCI president said the entire country was in the grip of an energy crisis due to the badly-timed import of LNG and CNG. It was the worst time to go for yearly repair and maintenance of the LNG terminal, he said, adding that as a result, it has been decided to generate electricity from the furnace oil, which is an expensive option.

Ghiyas Paracha, group leader of the All Pakistan CNG Association, 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.

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

The CNG sector in Punjab and Sindh is using imported gas so it has nothing to do with the reduction in domestic gas production; nor does it have any justification to cut off gas, he added.

Khalid Latif, chairman of the All Pakistan CNG Association, said that despite an investment of Rs450 billion in the CNG sector the future is bleak. Hundreds of thousands of workers have lost their jobs.

The FPCCI demanded the government to take measures for the revival of the sector by revoking the decision to impose additional taxes and ensuring the availability of environment-friendly and cheap fuel to the people.

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