Duty slapped on oil export to Afghanistan

ISLAMABAD - Pakistan has imposed regulatory duty on exports of high-speed diesel and superior kerosene oil to Afghanistan in order to discourage supply of subsidised oil to the war-torn country. The government has levied Rs 13.62 per litre duty on export of high-speed diesel, equivalent to the Price Differential Claims, which the government is giving for the benefit of the domestic consumers. In addition to it, Rs 0.65 per litre will be charged to cover foreign exchange loss. Similarly, Afghanistan will have to pay a duty of Rs 17.31 per litre on import of superior kerosene oil. The regulatory duties are not applicable on the supplies to International Security Assistance Force (ISAF), which is engaged in fighting against Taliban and Al Qaeda in Afghanistan and now attacking on the tribal belt of Pakistan. Federal Board of Revenue (FBR) official said the major import of allied forces was JP4, as the United States Army exclusively used JP4 oil as aviation fuel. The FBR has issued a notification and the regulatory duties would be applicable from September 1, 2008. "Subsidies on petroleum products is not for Afghan consumers," says Member Customs FBR Mehmood Alam. The diesel price in Afghanistan is quite higher than Pakistan, which has been encouraging smuggling of the product to the neighbouring country. This was resulting into more imports, putting extra burden on foreign exchange reserves and also causing loss of billions of rupees to the national exchequer on account of subsidies. Federal Minister for Finance and Revenue Syed Naveed Qamar a few days back had said the government had to suffer billions of rupees loss due to export of subsidised oil to Afghanistan. On a question seeking action against those who were responsible for such negligence, the Federal Minister said such action was not on the cards, however, the government would not allow that in the future. The FBR says the rates will remain intact till the Ministry of Petroleum and Natural resources makes an amendment on the basis of new calculations. The exports of high-speed diesel and superior kerosene oil made to Afghanistan would be contingent upon strict adherence to the procedure, terms and conditions laid down in the Export Policy Order, it adds.

ePaper - Nawaiwaqt