This is with reference to an article ‘The Rudderless Energy Sector’ that appeared in the op-ed section of Business Recorder on February 26, 2022. As for the assertion regarding the Larger Tax Payer Office (LTO) action, it must be clarified for public consumption that LTO issued Notice of Recovery of Sales Tax to SSGC without following any legal process and without waiting for decision of an independent panel, i.e., Appellate Tribunal in this case.

It is important that demand was raised on unreasonable grounds of treating swapping of indigenous gas against RLNG to SNGPL as sales.

Against the said recovery notice, SSGC filed a Constitutional Petition before the honourable Sindh High Court (SHC) and the latter suspended the LTO’s recovery notice through an order dated February 23, 2022 on the grounds of it being devoid of legal merits.

The SHC summarily directed SSGC to pursue the matter before the Appellate Tribunal. Consequently, LTO withdrew the said Notice with immediate effect.

Salman A. Siddiqui (Head of Corporate Communications and official spokesperson for SSGC)

Copyright Business Recorder, 2022