The Oil Marketing Association of Pakistan (OMAP) has demanded the federal government to release Rs. 90 billion in foreign exchange adjustments and tax refunds to the oil industry. The association has appealed to Finance Minister Muhammad Aurangzeb to ensure the availability of foreign exchange for oil imports and to reduce the turnover tax in the upcoming budget. OMAP Chairman Tariq Wazir Ali lamented the industry's liquidity problems due to massive foreign exchange adjustment losses, sales tax refunds, and the smuggling of Iranian petroleum products. He said oil marketing companies (OMCs) are burdened with Rs. 26 billion in foreign exchange adjustment losses. Additionally, Rs. 65 billion in sales tax refunds are stuck and making it increasingly difficult for OMCs to operate efficiently. The rampant smuggling of Iranian petroleum products into Pakistan is also undermining legitimate operations and inflicting Rs. 1 billion in losses per day on the economy. The liquidity crisis is further intensified as fi nancial institutions become hesitant to extend credit lines to OMCs. This situation has increased the cost of doing business. Meanwhile, the turnover tax adds financial burden, hurting profits drastically, Wazir Ali added. Source: Pro Pakistani
Related Articles
HBL Declares Profit of Rs. 27 Billion in First 9 Months of 2021
The Board of Directors of HBL has announced the financial results for the nine months period that ended on September 30, 2021.HBL today declared a consolidated Profit after tax of Rs. 27.0 billion, up by 7% as compared to Rs. 25.27 billion recorded in …
Over Half of Bureaucrats Fail to Clear Test for International Trade Officers
In a major setback to the government’s plans to appoint trade officers in foreign countries, more than 60 percent of candidates have failed the written tests for the 40 available positions, according to recent reports.Reports revealed that out of a to…
Khurram Shahzad Khan Appointed President and CEO of Habib Metropolitan Bank
Habib Metropolitan Bank Limited Tuesday announced that it has appointed Khurram Shahzad Khan as President and Chief Executive Officer of the Bank.In a notice to the Pakistan Stock Exchange (PSX), the bank said that Mohsin Ali Nathani, President and CE…