- FBR is urged to reinstate sales tax on petroleum products in the 2025-26 budget.
- OICCI submitted tax proposals emphasizing the reversal of the sales tax exemption.
- The exemption was granted under the Finance Act, 2024, affecting Mogas, Diesel, Kerosene, and LDO.
- The exemption has increased operational and capital expenditures for refinery upgrades.
- Input sales tax is no longer fully recoverable, increasing costs for refineries.
- OICCI recommends restoring taxable status and listing products for zero-rating in the Sales Tax Act.
- The refining industry cannot freely adjust pricing to offset tax burdens.
- The call to action highlights the need for a fair tax regime to support the refining sector.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
