Home »Budgets » SROs-Sales Tax » CNG outlets: five percent extra ST, further tax abolished

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  • Sep 14th, 2013
  • Comments Off on CNG outlets: five percent extra ST, further tax abolished
The Federal Board of Revenue on Friday abolished 5 percent extra sales tax and one percent further tax on the Compressed Natural Gas (CNG) stations with retrospective effect, ie, June 12, 2013. In this regard, the FBR here on Friday issued SRO.787(I)/2013 and SRO.788(I)/2013 to take away a total of 6 percent sales tax on CNG stations. According to SRO.787(I)/2013, the FBR has withdrawn 5 percent extra sales tax on supply of natural gas to CNG stations.

The Board has amended SRO.509(I)/2013 to take away extra sales tax on the CNG stations. Under SRO.509(I)/2013, the Board had levied extra tax at the rate of five percent of the total billed amount on supplies of electricity and natural gas to persons having industrial or commercial connections, and whose bill in any month exceeds Rs 15,000, but who have either not obtained sales tax registration number or are not on the Active Taxpayers List maintained by the FBR. Through an amendment to the SRO.509(I)/2013, the FBR notified 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.

Through SRO.788(I)/2013, the Board has included CNG stations in the list of items on which one percent further tax would not be applicable. In this regard, the amendment has been made in the SRO.648(I)/2013 dealing with items on which one percent further sales tax would not be applicable. Therefore, one percent further tax would not be applicable on the CNG stations. Following is the text of the SRO.787(I)/2013 issued here on Friday: In exercise of the powers conferred by sub-section (5) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendment shall be made in its Notification No SRO 509(I)/2013 dated the 12th June, 2013, namely:-

In the aforesaid notification, for the full stop, at the end, colon shall be substituted and thereafter the following proviso shall be added, 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."

This notification shall be deemed to have taken effect from the 12th day of June, 2013, notification added. Following is the text of the SRO.788(I)/2013 issued here on Friday: In exercise of the powers conferred by proviso to sub-section (1A) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendment shall be made in its Notification No SRO 648(I)/2013 dated the 9th July, 2013, namely:-

In the aforesaid notification, in the table, against serial number 2, in column (1), in column (2), after the word "consumers", the words and letter "and CNG stations" shall be added. This notification shall be deemed to have taken effect from the 13th day of June, 2013, the notification added.

Copyright Business Recorder, 2013


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