According to the letter of Member Tax Reforms Commission (TRC) Ashfaq Tola, who has been assigned to submit a comprehensive report on this issue, he sought data pertaining to 2015-16 and 2014-15 from the Ministry of Petroleum for finalisation of the equitable mechanism or formula for sales tax collection on the services of inter-city transportation of petroleum (POL) products. The exercise is aimed at resolving issue between the Federal Board of Revenue (FBR) and provincial sales tax authorities regarding input tax adjustment on provincial sales tax on the services of inter-city transportation of POL products.
The letter of the member TRC has referred to a meeting held at the Ministry of Petroleum & Natural Resources to resolve the issue between the FBR and provincial sales tax authorities regarding input tax adjustment on provincial sales tax on the services of inter-city transportation of POL products. He was assigned to submit a comprehensive report on an equitable mechanism for collection of sales tax on services of inter-city transportation of petroleum products.
In this connection, information will be required for the last two years ie form July 2014 to June 2015 and from July 2015 to June 2016 preliminary: local crude oil production (in barrels) for each province; quantity of crude oil supplied to refineries within the province by each province (in barrels for each province); quantity of crude oil supplied to refineries outside the province by each province (in barrels) and quantity of petrol and diesel originated by each province from OMCs and supplied to each province and areas under Federation in following format (in litres).
Data also included average rent of Oil Tankers per litre with respect to supplies both within and inter-province for each province in the format as under (Oil Tankers Contractors'''' Association may be directed to provide this information): The member TRC has also sought data pertaining to the effective sales tax rate (after adjustment of input taxes) with respect to each provincial revenue authority/board and FBR for the last two years.
Copyright Business Recorder, 2017