ISLAMABAD: The Sui Northern Gas Pipeline Limited (SNGPL) is reportedly in hot water after receiving the tax demand notice of Rs160 billion from the Federal Board of Revenue (FBR), well-informed sources told Business Recorder.
The gas utility company has written two consecutive letters to the Ministry of Energy (Petroleum Division) in just two weeks’ time, in which the former has requested to be a little sympathetic in the recovery of Rs160 billion, the sources added.
In continuation of the SNGPL’s earlier communications of even reference of February 16, 2024, and February 23, 2024, on the issue of tax notice, wherein, it was sensitized regarding undue tax demand of nearly Rs160 billion by the FBR on the SNGPL on the gas swapping issue (tax periods FY 2014-15 to 2020-21 having a catastrophic impact on the SNGPL’s liquidity.
Swapping issue: Rs100bn FBR notice perplexes beleaguered SNGPL
According to the SNGPL managing director, in the recent development, while the company has been pursuing legal remedies over this demand, a conditional stay has been granted by the appellate forums requiring the company to pay Rs5-10 billion towards the demand raised by the FBR.
The company has further stated that under the current stressed liquidity position, the company would not be able to meet this demand. At the moment, the SNGPL is grappling with a severe liquidity crisis aggravated by the prevailing circular debt issue.
“Our dedicated efforts are focused on ensuring the smooth operation of the RLNG supply chain in the country. Any coercive action by the FBR to recover this demand could significantly impact our liquid resources, further exacerbating the crisis. Such actions have the potential to disrupt the entire RLNG supply chain, posing a threat to our operational stability,” said Amir Tufail in his letter.
“Considering the critical situation, the SNGPL has sought the intervention of the petroleum secretary, requesting him to take up the matter with the FBR asking them to refrain from initiating any coercive action to recover the exorbitant tax demand which is already being put up at the ECC level,” the sources added.
Copyright Business Recorder, 2024
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