SNGP clarifies CEA tax dispute after LHC rules in its favor

April 22, 2026 (MLN): Sui Northern Gas Pipelines Limited (PSX:SNGP) has secured a favorable decision from the Lahore High Court regarding a disputed tax demand linked to Cost Equalization Adjustment (CEA) expenditure, with the court ruling that the amount qualifies as "wholly and exclusively for the purpose of business."

The dispute centered on the disallowance of CEA by tax authorities.

The adjustment had been remitted to Sui Southern Gas Company Limited (SSGCL) under a mechanism mandated by the Economic Coordination Committee (ECC) and approved by the Federal Government and the Oil and Gas Regulatory Authority (OGRA) in 2003, as part of efforts to maintain uniform gas pricing across the country.

The company clarified that the related expenditure is historical in nature and has already been reflected in its financial statements, as well as recognized in OGRA's tariff determinations for the relevant periods. As a result, it carries no incremental financial impact on current or future profitability.

SNGP further confirmed that the ruling does not give rise to any new financial obligation, liability, or adjustment, nor does it affect the company's current or future financial position.

The company stated it remains fully compliant with all applicable regulatory and disclosure requirements, adding that the matter is historical, already accounted for, and financially neutral.

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