To increase revenue, the government may increase petroleum taxes

ISLAMABAD: In order to improve revenue collection under the 2021-22 Federal Budget and IMF program, the government is expected to increase petroleum taxes on petroleum and other petroleum products.

The move will help widen the gap between compressed natural gas (CNG) and fuel prices and may include import bills. The government has set a target of 610 billion rubles for petroleum taxes this budget year, but in the first two and a half months it could collect more than 25 billion birr, an official said.

The Ministry of Finance said in a statement that the delegation of all Pakistani CNG associations to discuss the challenges facing the NGG sector with Finance Minister Shawkatan is currently experiencing a sharp fall in LNG international exchange rates. This makes CNG relatively expensive compared to gasoline in domestic markets.

Khalid Latif, chairman of the All Progressives Congress (APCNGA), Pakistan’s Finance Minister, said a comparison analysis between CNG and oil retail prices “has boosted CNG’s attractiveness to local consumers.”

Pakistan is one of the most environmentally friendly and alternative fuels in the world. The total investment in the CNG sector has reached 450 billion rubles in the last 15 years, according to the Ministry of Finance.

Mr Tarin told the CNG delegation that the CVD-19 epidemic had affected global oil prices, including LPG, due to side effects. He said the government has been able to withstand the pressure and provide significant relief to consumers. CNG users have reaffirmed their commitment to support affordable prices for their fuel.

Sources told the finance minister that CNG delegations could reach $ 700 million this year, compared to 51 percent of imports. The delegation presented to the government that the CNG sector is willing to pay a full year of maintenance to keep the LNG imports at the lowest possible prices.

The delegation demanded a reduction in sales tax and customs duties on imports from LNG in the CNG sector because it was the only sector that paid full import duty with taxes when all sectors paid subsidy gas and LNG rates.

The finance minister set up a committee consisting of FBR and Ogan, the Petroleum Division and representatives of the All-Pakistani CNG Association for Better Solutions.

For his part, FGNG leader Gias Paracha said increasing gas imports would save the government $ 350 to $ 700 million in two years. Mr. Paracha briefed the Minister of Finance on the problems and proposed long-term and short-term solutions, including a reduction in RLNG prices and a 12-PC sales tax for NGG stations in August-March.

Published Morning, September 28, 2021

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