Consumers to be pay Rs69.57 per kilo tax on CNG supply in region-I, Rs74.04 per KG sales tax in region-II
DNA
ISLAMABAD
The Oil and Gas Regulatory Authority (OGRA) has issued a notification about the increase in the prices of gas for domestic consumers with effect from July 1, 2019.
However, it has made no increase in the gas price for consumers falling in the first slab of domestic sector consuming less than 50 cubic metres per month. The rate for the second domestic slab (50-100 cubic metres) has been increased to Rs300, from the existing Rs127 per MMBTU.
Moreover, it has raised the rate for consumers using 100-200 cubic metres per month from the existing Rs264 per MMBTU, to Rs530.
The next slab of 201-300 cubic metres per month has been increased to Rs738 per MMBTU, from the current Rs275. For consumers using more than 400 cubic metres per month, the rate has been raised to Rs1,107 per MMBTU from Rs780.
The minimum bill has been fixed at Rs172.58 with revised tariffs per month.
Sources said the hike in gas prices will put an overall additional burden of billions of rupees on the consumers.
Hike in Sales Tax on CNG
The government has issued notification to raise the sales tax rate on the Compressed Natural Gas (CNG).
The CNG consumers would have to pay Rs69.57 per kilo tax on the CNG supply in region-I, while the region-II consumers would have to pay Rs74.04 per KG sales tax, according to the notification.
The government has increased sales tax for Region-1 from existing Rs64.80 to Rs74.04 per kg, whereas for Region-2 from present Rs57.69 to Rs69.57 per kg.
According to Federal Board of Revenue (FBR), the region-I comprises of Khyber Pakhtunkhwa, Balochistan, Rawalpindi, Islamabad and Gujjar Khan.
Sindh, Pothohar region and other parts of Punjab are part of the region-II, the taxation authority said. The new rates of sales tax on CNG will come into effect from July 1st.
All Pakistan CNG Association (APCNGA) Chairman Ghayas Piracha, commenting over the hike in sales tax rate said that the CNG price will enhance upto 21-22 rupees per kilogram.
Piracha said that the CNG price in Sindh will reach to Rs. 125 per kilogram, which will be between Rs. 137 to 140 in Khyber Pakhtunkhwa province.
He said the hike in the sale tax wouldn’t have much impact in Punjab as imported RLNG is being used in the province, which is more expensive then the CNG.
He criticized the hike in sales tax rate and demanded the government to take back the decision.
