ISLAMABAD – The President of Pakistan Mamnoon Hussain has put his signature on an ordinance that authorizes the federal government to collect 17 percent sales tax on the supply of natural gas to Compressed Natural Gas (CNG) stations.
According to the details, President Mamnoon Hussain silently signed an ordinance on the request of Pakistan Muslim League-Nawaz (PML-N)’s federal government advice.
With this ordinance implemented, the government levied a sales tax of 17 per cent on the supply of natural gas to CNG stations and distribution companies.
President Mamnoon Hussain signed this ordinance on Sunday, a day before the start of the National Assembly session. The ordinance will be known as the Sales Tax Amendment Ordinance 2014. Through the ordinance the government has amended the Sales Tax Act 1990.
Petroleum Secretary Abid Saeed expressed ignorance about the ordinance, saying that he had not been consulted.
The President of CNG Stations’ Association, Ghayas Paracha, condemned the ordinance, terming it a violation of the Supreme Court’s order in the case on sales tax.
It is worth mentioning that recently International Monitory Fund (IMF) released a third installment of support loan to Pakistan on the condition of increase the interest rate.