ISLAMABAD - The All Pakistan CNG Association (APCNGA) on Tuesday rejected increased taxes slapped on the CNG sector in the recently-announced budget and called for its immediate reversal.

Tax on the CNG outlets have been increased which will result in problems for the CNG operators and masses; therefore, the government should review its decision and retract the move, said APCNGA Central Chairman Ghiyas Abdullah Paracha. He said that CNG station owners continued to pay four percent withholding tax and 26 percent sales tax on the amount of gas consumed, he added.

Paracha said that now the method to calculate withholding tax has been changed and it is being imposed on the amount of consumed gas and the sales tax applicable on it. “This has enhanced the limit of withholding tax from four percent which is against the interests of industry and the consumers therefore we reject it,” he added.

He said that apart from the gas bills, changes have been made in the electricity bills. The government will continue to get withholding tax on power bills but now it will not be adjustable, he added. He asked the government to resolve the outstanding issues of the CNG sector so that it can play its due role in national development with peace of mind.