ISLAMABAD: The Special Investment Facilitation Council (SIFC) has directed the Petroleum Division (PD) to work with the Finance Division and Federal Board of Revenue (FBR) to address the sales tax exemption issue on petroleum products (POL) by November 10, 2024. This exemption is critical for advancing the $6 billion Brownfield Refineries Upgradation project.
The SIFC has also tasked the Petroleum Division with presenting a plan to eliminate illegal petroleum outlets and curb substandard fuel sales by November 7, 2024. At an October 22 meeting, the Oil Companies Advisory Council (OCAC) underscored that unresolved sales tax and smuggling issues significantly impact refinery profitability and risk $1 billion in foreign exchange annually.
The Oil and Gas Regulatory Authority (OGRA) has bolstered its inspection capacity to target illegal retail centers involved in smuggled fuel sales, while the FBR is preparing a timeline for resolving oil marketing companies’ tax refund issues by November 7. These steps align with SIFC’s commitment to enhance refinery operations, advance policy implementation, and uphold quality fuel standards in Pakistan.
Story by Khalid Mustafa
