Export of POL products to Afghanistan: FBR verifying payment of ST refunds

RECORDER REPORT

ISLAMABAD: The Federal Board of Revenue (FBR) has started an exercise to ascertain whether any sales tax refund has been sanctioned against 460 cancelled/expired export permits of oil marketing companies after the imposition of embargo on export of petroleum products to Nato/Isaf forces stationed in Afghanistan.

Sources told Business Recorder here on Saturday that the FBR has launched a country-wide exercise to verify the export permits issued to oil marketing companies. After cancellation of export permits on the export of POL products to ISAF/NATO forces in Afghanistan, any payment of sales tax refund would be inadmissible under the law.

According to sources, the issue was unearthed by the Model Customs Collectorate (MCC), Preventive, Karachi.

On the report of the MCC, the FBR directed its field formations to check payment of sales tax refunds on export of POL products to Afghanistan.

The MCC informed the FBR that after the imposition of embargo, oil marketing companies had approached the Collectorate for cancellation of transport permits under which these companies exported the POL products to Afghanistan under the provisions of SRO.943(I)/2007 (Chapter XXII), Rules 557 to 569 of Customs Rules i.e. SRO.450 (I)/2011.

The requests of OMCs were examined and it was found that transport permits issued to OMCs to transport POL products to Afghanistan stood cancelled after the lapse of permits validity period under Rule 564(2) of SRO.450(I)/2011: A total of 311 permits were issued to one oil marketing company, 99 to second OMC and 50 export permits were issued to the third OMC.

The MCC Appraisement Karachi had already forwarded particulars of cancelled permits to the office of the concerned Commissioner Large Taxpayers Unit, Karachi.

However, keeping in view the resultant non-admissibility of sales tax adjustments/refund, as the case may be against these permits, particulars of cancelled permits are being enclosed again for further legal action, audit and reconciliation, etc under relevant rules and regulations, sources added.