ISLAMABAD: The Khyber Pakhtunkhwa government has urged the federal government to grant sales tax exemption to the oil and gas companies for exploration of tight gas.
The KP government proposed that the prevailing sales tax on exploration, production and service companies may be removed to woo foreign and domestic investors.
The province also suggested that an order for exempting machinery imports from duty payment may be notified again to allow the exploration and production companies to bring down their cost of production.
The Ministry of Petroleum and Natural Resources insisted that the issue pertained to the Federal Board of Revenue (FBR) and a summary would be sent to the FBR for its input.
The governments of Sindh and Punjab have also endorsed proposed amendments to the policy designed for extraction of tight gas, a natural gas from reservoir rocks with low permeability that requires massive hydraulic fracturing.
