Govt to im­pose eq­ui­table tax on CNG: Dr Asim

The Pak Banker - - Front Page -


Ad­vi­sor to the Prime Min­is­ter on Pe­tro­leum and Nat­u­ral Re­sources Dr.Asim Hus­sain has said that eq­ui­table tax would be im­posed on Com­pressed Nat­u­ral Gas (CNG) in a bid to make it more eq­ui­table with Petrol to grad­u­ally phase out CNG.

Dr Asim Hus­sain ex­pressed th­ese view dur­ing the meet­ing of Na­tional As­sem­bly Stand­ing Com­mit­tee on Pe­tro­leum and Nat­u­ral Re­sources that met with En­gi­neer Tariq Khat­tak in the chair here on Wed­nes­day.

Dur­ing the meet­ing leg­isla­tive body ex­pressed its con­cerns over clo­sure of CNG sta­tions and pre­vail­ing dis­agree­ment over price mech­a­nism be­tween Oil and Gas Reg­u­la­tory Author­ity (OGRA) and Com­pressed Nat­u­ral Gas (CNG) as­so­ci­a­tion.

Leg­is­la­tors were of the view that OGRA and CNG as­so­ci­a­tion were stiff over their stances while com­mon man has been forced to stay in long queues for hours to gas fuel for the ve­hi­cles.

Dr.Asim Hus­sain in­formed the com­mit­tee that ac­tual CNG gas price is Rs. 35.19 and CNG sta­tions were charg­ing Rs 20.80 merely in op­er­a­tional cost. Gas In­fra­struc­ture Devel­op­ment Sur­charge (GIDC) is Rs 13 and Gen­eral Sales Tax (GST) on CNG is Rs 12.10

“The government is com­mit­ted to grad­u­ally phase out CNG from the coun­try as we donot have suf­fi­cient gas re­serves in the coun­try,” the ad­vi­sor said, adding that the government is de­vis­ing a pol­icy for said pur­pose.

He also crit­i­cized the role of Oil and Gas Reg­u­la­tory Author­ity as reg­u­la­tor and said that be­ing a reg­u­la­tory OGRA has been failed to de­liver.

He added that government has in­creased the gas price to $6 which has en­hanced the ex­plo­ration work and cur­rently forty rigs are op­er­a­tional in the coun­try. Ad­vi­sor said that thirty thou­sand bar­rel oil from KPK would be added into the na­tional sys­tem till March 2013.

Leg­is­la­tors said that “first of all we should see that ei­ther we have suf­fi­cient gas re­serves in the coun­try to burn in the ve­hi­cles at cheap rates or not,” We are wast­ing gold at cheap rates while other in­dus­tries are suf­fer­ing due to it,”.

Law­maker Rana Afzal Hus­sain re­marked that CNG as­so­ci­a­tion has be­come a car­tel and they looted the in­no­cent peo­ple of the coun­try and minted mil­lion of ru­pees from con- sumers.

He said that as­sur­ance of hun­dred per­cent profit over busi­ness is be­yond un­der­stand­ing, no one can un­der stand that CNG mafia is be­ing fa­cil­i­tated.

Stand­ing com­mit­tee handed over this is­sue to the sub­com­mit­tee work­ing un­der the chair­man­ship of Jamshed Dasti and di­rected to sub­mit its report im­me­di­ately.

Stand­ing com­mit­tee largely re­sented the ex­plo­sions of CNG cylin­ders in the ve­hi­cles and said that per­for­mance of ex­plo­sive de­part­ment is nil.

Dr. Asim Hus­sain said that Ex­plo­sive de­part­ment is un­der the con­trol of min­istry of In­dus­tries where they get bribes and af­ter fill­ing forms give lab­o­ra­tory cer­tifi­cates. He said that min­istry of pe­tro­leum and nat­u­ral re­sources have ini­ti­ated leg­is­la­tion over to bring it un­der the con­trol of the min­istry. Stand­ing com­mit­tee de­cided to hold a sep­a­rate meet­ing over it.

Sec­re­tary Pe­tro­leum Dr. Waqar Ma­sood said that flare gas pol­icy is at the fi­nal stage of its prepa­ra­tion and its draft has been sent to all stake­hold­ers for their pos­i­tive in­put. He said that this pol­icy has been dis­cussed with the gas com­pa­nies and they are sat­is­fied over this pol­icy.

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