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CNG operators resist increase in petroleum surcharge

ISLAMABAD — A number of new taxes including the petroleum development surcharge is being enforced under the federal budget for 2008-09 that has forced the CNG operators to raise the price of the gas by Rs15 per kilogramme or to go on strike to compel the government to withdraw the new taxes.

As a first step in support of their demand, the All Pakistan CNG Association announced yesterday that all CNG stations in Peshawar will observe complete strike on June 30, and if the government does not agree, CNG stations all over the country would be shut down for an indefinite period, acting Chairman of Pakistan CNG Association, Mohammad Ghias Paracha announced yesterday.

Paracha said CNG is the only sector which pay the highest taxes to the government and the new taxes announced by the government under federal budget 2008-09 have threatened the survival of all those associated with the CNG business, he said.

The government charges advance tax on CNG operators who were also charged unjustified taxes on natural gas and electricity. On electricity bills, CNG operators were paying 15 per cent sales tax and 10 per cent advance tax. The additional 24 per cent sales tax on CNG has now been enhanced to 25 per cent. The recent 11.5 per cent increase on electricity bills is an additional burden on CNG operators.