Thursday, April 11, 2024
Thursday, April 11, 2024
HomeLatestGovernment Implements Gas Price Hike Following IMF Agreement

Government Implements Gas Price Hike Following IMF Agreement

The government has announced an increase in gas prices across Pakistan, complying with the conditions set by the IMF. This decision is expected to have significant implications for consumers and businesses nationwide.

According to sources, protected consumers will face a Rs 100 per mmbtu increase, while non-protected consumers will experience a more substantial hike of Rs 300 per mmbtu. Commercial users of gas will also feel the pinch, with prices set to rise by a considerable Rs 900 per mmbtu.

The CNG sector is not exempt from these adjustments, as sources indicate a significant Rs 170 per mmbtu price hike. Additionally, fertilizer factories will see a slight increase in gas tariffs, further impacting production costs.

The ECC also approved the process to determine a 25 percent sales tax rate on locally manufactured and assembled vehicles. Under this proposal, vehicles worth Rs four million or with 1400cc engines will be subject to a sales tax of 25 percent. This tax imposition is expected to continue in the upcoming budget.

The imposition of a 25 percent sales tax on 1400cc vehicles is likely to lead to a significant price hike for consumers. This move comes as part of the government’s efforts to meet IMF conditions, despite concerns about its impact on the affordability of essential commodities and the overall cost of living for the public.

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