Tax Reprieve for Pakistan CNG Station Operators

| Pakistan | Source: Business Recorder

Following submissions by All Pakistan CNG Association (APCNGA), the Federal Board of Revenue (FBR) has added an exemption to its blanket General Sales Tax (GST) on sales of compressed natural gas (CNG) imposed earlier this year, by exempting CNG sold to service stations.

According to a report by Pakistan’s Business Recorder, a provision has been passed, namely, “Provided that the levy of extra tax at the rate of five percent shall not be applicable in case of supply of natural gas to CNG stations,” retrospectively applicable from June 13, 2013. The reprieve also applies to a further sales tax of 1%.

FBR Rulings SRO.787(I)/2013 and SRO.788(I)/2013 therefore reduces tax by a total of 6%.

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