KARACHI: The Customs’ Directorate of Internal Audit has unearthed massive tax evasion by the oil marketing companies.
As per report, the oil marketing companies are not paying sales tax and petroleum development levy (PDL) while ex-bonding dutiable petroleum products by applying incorrect PDL rate.
The rate of petroleum development levy for sales through retail outlets and for direct sales is different. However, the collectorates have only charged the rate of PDL for sales through retail outlets in all cases, which is invariably less than the rate prescribed for direct sales.
The companies have expressed their inability to provide ship-wise IGM record of their direct sales to bulk consumers as they could not maintain the record on that pattern. The Ministry of Petroleum & Natural Resources issues notifications on fortnightly basis for charging of petroleum development levy on the petroleum products as per the rates mentioned therein. These rates have been specified category-wise as higher rates are applicable on direct sales as compared to the sales through retail outlets.
