MULTAN: Collector Customs Adjudication issued a show cause notice to M/s Pakistan State Oil Company Limited against tax evasion of Rs18.734 million in wake of Petroleum Development Levy.
According to details, Multan Customs conducted an audit of the ex-bonded High Speed Diesel (HSD) cleared through Multan Dry Port by M/s Pakistan State Oil Company Limited. Multan Customs found during the audit that M/s Pakistan State Oil Company Limited cleared 4,153,923 liters and applied the rate of Petroleum Development Levy @Rs2.59% per liter instead of applicable rate @Rs.7.1 per liter under SRO (I)/2013 dated 31st January 2014.
M/s Pakistan State Oil Company Limited paid petroleum development levy of Rs10.758 million with the rate of Rs2.59 per liter but the actual duty amount was almost Rs29.492 million with applicable rate of Rs7.1 per liter which resulted in short-realization of Rs18.734 million.
The amount of petroleum development levy Rs18.734 million is still recoverable from M/s Pakistan State Oil Company Limited PSO House, Khayaban-e-Iqbal Clifton Karachi under sub-section (3A) of Section 32 of the Customs Act 1969.
Collectorate of Customs framed a contravention report against M/s Pakistan State Oil Company Limited for tax evasion and forwarded the case to Customs Adjudication for legal trial.
Collector Customs Adjudication Asif Khan Buzdar issued show cause notice to M/s Pakistan State Oil Company Limited and asked them to submit their reply within next 10 working days.
