Chairman of All Pakistan LPG Distributors Association Raises Concerns Over GST Hike

The Chairman of the All Pakistan LPG Distributors Association has expressed worries regarding the potential increase in GST on imported LPG from 8% to 18% in the upcoming financial budget of 2024-2025. This adjustment is anticipated to create a significant financial burden for individuals with lower incomes.

In a letter addressed to the Prime Minister, the Chairman has urged the government to reconsider this decision, emphasizing the hardships it may impose on the populace. LPG stakeholders have also conveyed their concerns to the Prime Minister, highlighting that the planned tax raise could lead to a price surge of Rs 164 per cylinder, making LPG unaffordable for many households.

The Chairman has cautioned about a potential strike before Eid-ul-Adha if the government proceeds with the tax increment. He has pointed out that both importers and consumers would be adversely affected by the hike, as a substantial portion of the country's LPG demand is fulfilled through imports.

Given Pakistan's severe natural gas shortages and the financial struggles faced by numerous low-income families, the Chairman has criticized the government's decision to raise prices of essential energy sources while investing in tree-planting initiatives. He has emphasized the necessity of maintaining the GST on imported LPG at a minimal level to prevent severe consequences for millions of impoverished LPG users facing socio-economic challenges.

Highlighting the natural gas crisis in the country, the Chairman has stressed the importance of imported LPG in bridging the supply-demand gap. He has urged the government to carefully consider the financial implications on the most vulnerable segments of society before proceeding with the GST increase.

The concerns raised by the All Pakistan LPG Distributors Association shed light on the potential hardships that could arise from the proposed GST hike on imported LPG. It is crucial for the government to weigh the impact on low-income consumers and the overall energy landscape of the country before implementing such changes. Ensuring affordable access to essential energy sources remains a vital aspect of addressing socio-economic challenges faced by many in Pakistan.