AGL 38.78 Decreased By ▼ -0.72 (-1.82%)
AIRLINK 194.29 Increased By ▲ 17.66 (10%)
BOP 10.84 Increased By ▲ 0.75 (7.43%)
CNERGY 6.87 No Change ▼ 0.00 (0%)
DCL 10.19 Increased By ▲ 0.26 (2.62%)
DFML 43.13 Increased By ▲ 0.39 (0.91%)
DGKC 96.61 Decreased By ▼ -1.56 (-1.59%)
FCCL 38.07 Decreased By ▼ -1.24 (-3.15%)
FFBL 81.43 Decreased By ▼ -0.43 (-0.53%)
FFL 14.03 Decreased By ▼ -0.36 (-2.5%)
HUBC 118.98 Decreased By ▼ -2.46 (-2.03%)
HUMNL 14.77 Decreased By ▼ -0.57 (-3.72%)
KEL 5.74 Increased By ▲ 0.08 (1.41%)
KOSM 8.49 Increased By ▲ 0.37 (4.56%)
MLCF 46.54 Decreased By ▼ -1.57 (-3.26%)
NBP 77.23 Increased By ▲ 1.41 (1.86%)
OGDC 194.78 Decreased By ▼ -2.63 (-1.33%)
PAEL 34.74 Increased By ▲ 2.36 (7.29%)
PIBTL 8.38 Increased By ▲ 0.23 (2.82%)
PPL 174.57 Decreased By ▼ -0.93 (-0.53%)
PRL 33.17 Decreased By ▼ -0.92 (-2.7%)
PTC 24.57 Increased By ▲ 2.23 (9.98%)
SEARL 110.04 Increased By ▲ 6.84 (6.63%)
TELE 8.90 Increased By ▲ 0.39 (4.58%)
TOMCL 34.83 Decreased By ▼ -0.20 (-0.57%)
TPLP 11.69 Increased By ▲ 0.43 (3.82%)
TREET 18.56 Decreased By ▼ -0.59 (-3.08%)
TRG 60.06 Increased By ▲ 1.50 (2.56%)
UNITY 36.49 Increased By ▲ 1.63 (4.68%)
WTL 1.75 Increased By ▲ 0.16 (10.06%)
BR100 11,701 Increased By 49.8 (0.43%)
BR30 35,411 Decreased By -67.2 (-0.19%)
KSE100 109,054 Increased By 815 (0.75%)
KSE30 33,849 Increased By 155.6 (0.46%)

ISLAMABAD: The Federal Board of Revenue (FBR) Friday conveyed to the Ministry of Energy that the Section 236H (2.5 percent advance tax on sales to retailers) of the Income Tax Ordinance 2001 is not applicable to petrol pumps of Oil Marketing Companies (OMCs).

The dealers/retail outlets of OMCs fall under the purview of Final Tax Regime which is final discharge of tax liability by the dealers/retail outlets of OMCs, the FBR added.

According to a legal clarification issued to the Director General Oil, Ministry of Energy (Petroleum Division) here, the FBR has clarified that the provisions of the tax collection under section 236H of the Income Tax Ordinance 2001 is not applicable on dealers and retail outlets of Oil Marketing Companies.

The FBR stated that refer to OM received from Ministry of Energy (Petroleum Division) seeking clarification from FBR in order to exclude Oil Marketing Companies (OMCs) from the applicability of section 236H.

The perusal of the subject letter revealed that dealers/retail outlets (Petrol Pumps) works on fixed dealer margin which is regulate by government of Pakistan and it is a price regulated sector.

At present tax is being collected under section 156A of the Income Tax Ordinance, 2001 (the Ordinance) which is full and final discharge of their liability.

Through Finance Act 2024, the scope of section 236H ibid is extended to all the sectors of economy and therefore, petroleum dealers/retail outlets are facing undue hardship due to the said amendment in the Ordinance. Hence, the Directorate General Oil sought the clarification.

In view of the above explained position, it is clarified that the provisions of tax collection under section 236H ibid are not applicable on dealers/retail outlets of OMCs as the income of such person fall under the purview of Final Tax Regime in terms of section 169 of the Ordinance and it is final discharge of tax liability by the dealers/retail outlets of OMCs, the FBR added.

Copyright Business Recorder, 2024

Comments

Comments are closed.