OMAP writes letter to FBR chief: Concern voiced over budget implications for petroleum industry
LAHORE: The Oil Marketing Association of Pakistan (OMAP) has written a letter to the Chairman of the Federal Board of Revenue (FBR), expressing concerns over the recent budget announcement and its implications for the petroleum industry.
According to the letter, the association recommended that government should reinstate the sales tax on petroleum products, as was the case prior to their zero-rating. This move will facilitate the adjustment of sales tax for Oil Marketing Companies (OMCs) without increasing costs, as margins are regulated. Moreover, it will generate additional revenue for the government.
Currently, the turnover tax is set at 0.5 percent, which is excessively high given the overall financial outlook of OMCs.
OMAP demanded that FBR should reconsider and reduce this tax to 0.25 percent, thereby preventing further financial distress within the industry.
The association has warned that failure to address these concerns may lead to the collapse of the petroleum industry, which plays a vital role in Pakistan’s economic stability and development.
Copyright Business Recorder, 2024
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