CNG stations seek deferment of carbon tax.

KARACHI, June 16, 2009 (Balochistan Times) --The CNG Station Owners Association (CSOA) has urged the government to defer a proposed carbon tax on compressed natural gas (CNG) in the federal budget and said that it would be detrimental for the industry as well as the consumers. Addressing a press conference here Tuesday, chairman Malik Khuda Bakhsh said that it was surprising that an environmental friendly fuel has been subjected to carbon tax. He alleged that CNG association had not been taken into confidence in this regard. He said that instead of reducing gas prices, the government has imposed carbon tax on CNG which is free of carbon emissions. Besides, PDL did not apply on CNG, he added. Malik said that CNG was the substitute to petrol and diesel and qualifies for getting carbon credit. He was of the opinion that this tax will destroy CNG industry which has attracted an investment of Rs 150 billion on setting up CNG stations and conversion of 2.1 million vehicles to CNG. He noted that this levy will deprive the consumers of cheap and environment friendly fuel. CSOA chairman said that the petroleum policy of 1994 ensures a difference between the prices of petrol and CNG and it cannot be withdrawn unless this policy is revoked. Chairman Consumers Association of Pakistan Kaukab Iqbal who also addressed the press conference said that the government has not provided any relief to the common man in the budget. The government should immediately withdraw this fuel of middle class, he added.

(THROUGH ASIA PULSE)