ISLAMABAD: Performance Audit Report on Liquefied Petroleum Gas (LPG) producing companies for audit year 2015-19 highlighted violations of rules during import of the gas.
During performance audit of LPG Producing Companies for the financial year, it was observed that import of LPG was being made by private parties without any prior approval from the government or obtaining a valid license from the OGRA.
Instead of taking necessary legal action against unauthorised importers, the regulator further facilitated the importers by allowing waiver in Petroleum Levy (PL) and reduction of sale tax by five percent.
Audit is of the view that failure of OGRA and DG (LG) to implement the PL resulted in imports of LPG worth billions of rupees by the private sector and thus, distorting the LPG market to the detriment of the end consumer.
The auditors further observed that three to nine companies were importing LPG without obtaining a license from the OGRA as required. The list of these importers was supplied to the OGRA by the LPG Importers Association indicating the details of imports by each party from 2013 to June 2019.
Copyright Business Recorder, 2021
Comments
Comments are closed for this article.