At present, the local LPG industry is paying 17% general sales tax (GST) whereas the importers are paying 10% GST. In the new LPG policy, the Petroleum Division has recommended 10% GST for locally produced and imported LPG. According to estimates, the LPG importers have pocketed around Rs20 billion due to the reduced rate of GST. Regulatory dutyEarlier, the government had favoured LPG importers by removing the regulatory duty on LPG import. The LPG industry says that there is nothing wrong with the existing LPG Production and Distribution Policy 2016.

Source: The Express Tribune August 05, 2021 03:22 UTC