January 02, 2025 (MLN): The Federal Board of Revenue (FBR) has requested Oil Marketing Companies (OMCs) to submit a formal response regarding the Pakistan Oil Refining Policy for the upgrade of existing/brownfield refineries in 2023.
The directive outlined above was communicated in a letter written by the Ministry of Energy (Petroleum Division) to Pakistan State Oil (PSO), the Oil Company Advisory Council (OCAC), and Farkhun Anwar, the Focal Person on Oil Refineries.
In the letter, the FBR has desired to provide a formal reply to the following queries:
Current status of the payment of each refundable amount case at respective field formation of FBR.
Refinery/OMC wise operational/capital (separately provincial and federal) per liter cost with different scenarios/ proposals to address the sales tax issue (retrospectively/prospectively).
Impact of reduction in government revenue, if PL is reduced to the extent of increase in IFEM/GST.
Draft bill on changing exempt sales tax regime to taxable regime.
The FBR's inquiry concerns the impact of this policy on the sales tax exemption on petroleum products under the Sales Tax Act, 1990.
The aforementioned meeting was held on December 31, 2024, at the Headquarters of the FBR.
This information will be further discussed in a meeting scheduled for 3rd January 2025 (Friday).
Focal persons from refineries and OMCs will meet with the concerned officers of FBR.
