IrfanKhokhar, Chairman of the All Pakistan LPG Distributors Association, has warned that the proposed increase in GST on imported LPG from 8% to 18% in the upcoming financial budget of 2024-2025 will significantly burden poor consumers. In a letter to Prime Minister Shehbaz Sharif, Khokhar urged the government to reconsider the decision, emphasizing the potential hardships it would cause.
Khokhar stated that the LPG stakeholders have already communicated their concerns to the Prime Minister, highlighting that the planned tax increase would lead to a rise of Rs 164 per cylinder, making LPG unaffordable for many. He warned that if the government proceeds with this decision, a strike might be initiated before Eid-ul-Adha.
He elaborated that the hike would adversely affect both importers and consumers, pointing out that around 300 LPG marketing companies rely on imported LPG to meet 60-70% of the country’s demand. He stressed that increasing the tax to 18% would be detrimental, especially when the nation is grappling with severe natural gas shortages and millions of low-income families are already struggling to make ends meet. Khokhar also criticized the government’s contradictory actions, such as spending billions on tree-planting campaigns while making essential energy sources more expensive.
He called for the GST on imported LPG to remain at the minimum level, warning that raising it to 18% would severely impact millions of impoverished LPG users who are already facing extreme socio-economic challenges. Highlighting the natural gas crisis in Pakistan, Khokhar noted that the heavy reliance on imported LPG is necessary to bridge the supply-demand gap. He urged the government to consider the severe financial implications on the poorest segments of society if the GST on imported LPG is increased.
