Despite opposition from local liquefied petroleum gas (LPG) producers, mainly state-run companies, the Petroleum Division is further strengthening the monopoly of influential LPG importers by recommending cost and freight (C&F) prices and removal of advance tax on imports in the new proposed LPG Policy 2021.
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. However, it has recommended the removal of advance tax on LPG import to favour the importers. According to estimates, the LPG importers have pocketed around Rs20 billion due to the reduced rate of GST.
Now, the Petroleum Division has suggested the removal of advance tax on LPG import.