ISLAMABAD: Sui Northern Gas Pipeline Limited (SNGPL) is reportedly in the hot waters after receiving tax recovery notice of Rs 100 billion from the Federal Board of Revenue (FBR) on swapping issue, sources told Tribune Times.
As per available details, the Company (SNGPL) is in receipt of tax recovery notice from FBR amounting to nearly Rs. 100 billion on swapping issue for payment within 7 days. This is in addition to a similar demand of Rs. 60 billion earlier raised by FBR on this issue for FY 2017-18.
According to Managing Director, SNGPL, Amir Tufail, while the company is currently pursuing legal remedies of filing appeal against this demand at various appellate forums.
“We understa4nd that a draft summary for ECC of the cabinet on Swapping issue has been prepared by the Ministry of Energy ( MoE) which is currently pending with Ministry of Finance and FBR for comments, “ he said adding that at the moment, SNGPL is grappling with a severe liquidity crisis aggravated by the prevailing circular debt issue.
He further stated that the Company’s dedicated efforts are focused on ensuring the smooth operation of RLNG supply chain in the country, adding that any coercive action by the Federal Board of Revenue to recover this demand could significantly impact our liquid resources, further exacerbating the crisis.
“Such actions have the potential to disrupt the entire RLNG supply chain, posing a threat to our operational stability,”Tufail maintained.
Considering the critical situation SNGPL sought intervention of Petroleum Division to take up the matter with FBR asking them to refrain from initiating any coercive actions to recover this exorbitant tax demand which is already being put up at ECC level.
“This is crucial for the seamless fractioning of Company’s operations and to avoid any disruption in payment to Pakistan State Oil (PSO) PLL leading to any international default in RING payments, he said requesting Petroleum Division to take up the matter for finalization of summary for ECC of the Cabinet on Swapping issue which would help the Sui Companies to resolve this matter on permanent basis. ENDs
