- Govt to revise procedure for export of petroleum to neighbouring country
By Sajid Chaudhry
ISLAMABAD: The federal government has decided to revise the procedure for the export of petroleum products to Afghanistan, a senior customs official told the Daily Times on Thursday.
A new standing operating procedure to replace the existing procedure applicable on the export of petroleum products to Afghanistan will soon be announced. This will be aimed at checking the increasing trend of fake exports, tax frauds and bringing back the exported consignments.
Exporters and exporting companies were found involved in claiming sales tax refund, duty drawback and concessions under the Duty and Tax Remission for Export (DTRE) fraudulently and causing the exchequer loss of millions of rupees each year in the recent past.
The decision to introduce a new procedure was taken at the Third Collector’s of Customs Conference held here on Jan 22 under the chairmanship of Secretary-General of the Revenue Division/Chairman of the Central Board of Revenue Abdullah Yusuf.
The official informed that some petroleum companies and other exporters had been involved in the practice of claiming duty drawback, sales tax refund and the incentives offered through the DTRE Scheme on the export of petroleum products to Afghanistan. The companies and other exporters involved in such tax frauds after the receipt of the claim or realization of tax incentives bring back the exported consignments to Pakistan and sell them in the country, especially in the NWFP.
The official further informed that the export of petroleum products to Afghanistan are being facilitated and encouraged through incentives offered by the tax authorities in the shape of claiming of sales tax refund, duty drawback and other concessions under the DTRE Scheme.
A committee, comprising senior customs officials, in consultation with other relevant government departments are to prepare recommendations on the proposed standing operating procedure for the export of petroleum products to Afghanistan, on which important stakeholders are to be consulted upon completion. The new procedure will not only facilitate and encourage the export of petroleum products to Afghanistan, but will also eliminate the chances of tax fraud, the official added. The new procedure will block fake exports and encourage genuine exports of petroleum products to Afghanistan. The role of Pakistan’s diplomatic mission in Afghanistan is to be made more effective for verification of exports made to Afghanistan, especially through the land route.
The export of petroleum products to Afghanistan has been increasing every year. The Afghan government, the International Security Assistance Force and now increase in the number of NATO forces in the country is increasing the local demand for petroleum products. A local petroleum distribution company has recently sought tax incentives on the export of JP8 fuel and aviation fuel to Afghanistan.