Thursday, June 24, 2010

News Views: Duty-free Afghan oil exports deprive

Source: The News

Date: June 25, 2010

 

Pakistan of Rs1.2bn annually; PSO urges withdrawal of exemptions, says a huge quantity of exported oil smuggled back

 

KARACHI: Duty and tax exemptions provided on oil exports to Afghanistan is depriving the government of more than Rs1.2 billion annually and encouraging several oil marketing companies to dump a huge quantity meant for exports in the local market, industry and government sources said.

 

“The tax- and duty-free oil exports also encourage people to smuggle back exported oil from Afghanistan and sell it here on discounted rates,” a Petroleum Ministry official told The News by telephone from Islamabad requesting anonymity.

 

The Pakistan State Oil (PSO) in a confidential letter to the Petroleum and Natural Resources Ministry and the Commerce Ministry urged for immediate measures to halt this ‘unethical’ practice, he said.

 

The letter dated June 17, a copy of which is available with The News, says that there has been an “alarming growth of exports volume” of almost 100 per cent to Afghanistan in the current financial year. The government loses Rs100 million a month because of the duty and tax exemptions on exported oil, it said.

 

Pakistan’s oil exports to Afghanistan jumped to 102,776 tons during the first 10 months of ‘10 (July-April) from 51,759 tons during the corresponding period a year ago.

 

For more details please visit website: http://www.thenews.com.pk/daily_detail.asp?id=247132

 

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