The revenue board cut advance income tax on the import of liquefied natural gas (LNG) in order to keep its prices low on the local market.
The National Board of Revenue (NBR) slashed the advance tax to 2.0 per cent from the existing 5.0 per cent in case of LNG import.
The board has issued a notification to make it effective.
A senior official of the income tax wing said such tax on import of LNG has been reduced to facilitate the supply of energy at lower prices after re-gasification.
According to the income tax ordinance, most of the imported items attract advance tax at a rate of 5.0 per cent. The rate of Advance Income Tax (AIT) is also 2.0 per cent for the imports of octane and petrol.