Federal govt raises sales tax on CNG supply

ISLAMABAD: The federal government has increased the sales tax on compressed natural gas (CNG) supply from Rs 140 to Rs 200 per kilogram (KG) on Thursday.

Notification of development with increase in sales tax value has been issued for Region One and Region Two.

According to the notification, the sales tax rate in Region One will increase from Rs 140 to Rs 200 per kg, a similar adjustment has been made in Region Two, where the sales tax rate has increased from Rs 135 to Rs 200 per kg. will go

The notification states that sales tax will be applicable at the rate of 18 per cent on a value of Rs 200.

As per the Federal Board of Revenue (FBR), Region One includes Khyber Pakhtunkhwa (KP), Balochistan, Rawalpindi, Islamabad and Gujjar Khan, while Region Two includes other cities of Sindh and Punjab.

The notification comes as part of the government’s efforts to regulate and standardize sales tax values ​​across regions, with an aim to streamline tax collection and ensure compliance with tax norms.

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In January this year, Sui Northern Gas Pipelines Limited (SNGPL) decided to suspend gas supply to compressed natural gas (CNG) stations.

As per the details, the spokesman said that the decision to suspend gas supply to the CNG station has been taken in view of the ongoing gas crisis.

He said that gas supply to CNG stations in all areas of Peshawar will be suspended from tomorrow.