OGDCL clarification

13 May, 2016

A news regarding freezing of OGDCL accounts appeared in a section of press (dated 6th May 2016), portraying the company as a tax defaulter. The factual position is somewhat different as dilated below.
"OGDCL is the largest national oil company of Pakistan and is also the highest tax payer of the country. It paid 54.56 billion rupees as income tax and made a total contribution of Rs 123.70 billion towards the national exchequer during tax year 2015. Despite the given facts, it is unfortunate that the company has to sustain an aggressive and coercive actions by the tax authorities. In the wake of aggressive drive for revenue generation frivolous and arbitrary tax demands based on irrational grounds are raised from time to time. Even in the instant case a stay order from Islamabad High Court was in place; however, tax authorities chose to ignore and violate the court order and resorted to illegal and improper measures to the detriment of the company and its shareholders. Such steps certainly do not augur well especially when the entity being targeted is listed at a foreign stock exchange. The impugned freezing of accounts has however been set aside by the Appellate Tribunal Inland Revenue vide order dated 10th May 2016 on the very first hearing. The withdrawal of attachment has so far not been communicated by tax department to OGDCL banks and customers till the issuance of this clarification and the company operations are still on hold, adding to losses. It is expected that FBR will comply with the order of ATIR without unnecessary delay.
"It cannot be overemphasised that such untoward and unjustifiable acts are not only jeopardising the day to day operations of the company including the progress of the company's capital intensive projects of national importance and defeating the endeavours to plug the demand and supply gaps of our energy stricken country, but also disseminating negative sentiments amongst the investors in national and international stock markets."

Read Comments