ISLAMABAD - All Pakistan CNG Association (APCNGA) Tuesday accused the Federal Board of Revenue (FBR) of illegal collection of increased sales and income taxes from the CNG sector and warned that they will take the matter to the court.
“We are tired of writing letters and asking the government again and again, but it seems that the government is not interested in the resolution of the issue. now the next step will be ‘knocking at the door of the court’,” Ghiyas Paracha told The Nation. When traders can go on strike for their demands, CNG association also reserves the right to take legal action, he maintained.
He said that earlier the CNG association was asked by the government to deposit 4 percent income tax in advance, which they deduct in the gas bill, and the tax charged on oil, gas and electricity bills will be refunded. “For our convenience we have agreed the demand, of advance tax deposit, of the government but now we are being double charged,” Paracha said adding that the FBR doesn’t entertain our refund claims,”.
The most important issue related to the collection of sales tax, which is badly affecting the CNG sector, is the FBR charging enhance sale tax with the rate of 30 to 32 percent on the CNG sector, Paracha maintained.
Meanwhile, a press statement issued by the APCNGA said the illegal collection of taxes from CNG sector is the violation of Supreme Court order as the superior court had directed the government to slash 26 percent sales tax on the CNG sector to 17 percent which was not followed. Instead a deceptive formula was introduced which shows the sales tax at 17 percent but its impact on CNG operators is not less than thirty two percent, the statement said.
The enhanced sales tax and income tax from the CNG sector will compromise its ability to operate their business and serve the masses. The lingering tax issue will increase problems for all the stakeholders therefore it must be resolved on priority basis, the statement said.
It is injustice that some sectors have been exempted from taxes while others are getting relaxations, the CNG sector pays taxes in advance but even then it is being pushed to the wall.
The CNG sector wants to pay taxes, the way other sectors are paying it, which will bring discrimination to an end, said the statement.