ISLAMABAD : Sui Northern Gas Pipeline Limited (SNGPL) has against sought Petroleum Division’s support to deal with tax demand of nearly Rs 160 billion by the Federal Board of Revenue (FBR).
In continuation of SNGPL’s earlier communications of even reference of February 16, 2024 and February 23, 2024 on the captioned subject wherein it was sensitized regarding undue tax demand of nearly Rs. 160 billion by FBR on SNGPL on the gas swapping issue (tax periods FY 2014-15 to 2020-21 having catastrophic impact on SNGPL’S liquidity.
According to Managing Director SNGPL, in the recent development, while the company has been pursuing legal remedies over this demand. a conditional stay has been granted by the appellate forums requiring Company to pay Rs. 5-10 billion towards the demand raised by FBR.
The company has further stated that under the current stressed liquidity position, Company would not be able to meet this demand. At the moment, SNGPL is grappling with a severe liquidity crisis aggravated by the prevailing circular debt issue.
“ Our dedicated efforts are focused on ensuring the smooth operation of RLNG supply chain in the country. Any coercive action by the Federal Board of Revenue to recover this demands 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,” said Amir Tufail in his letter.
Considering the critical situation , SNGPL has sought intervention of Petroleum Secretary, requesting him to take up the matter with FBR asking them to refrain from initiating any coercive actions to recover the exorbitant tax demand which is already being put up at ECC level,” the sources added.
Managing Director is of the view that this is crucial for the seamless functioning of Company’s operations and to avoid any disruption in payment to PSO/ PLL leading to any international default in RLNG payments.
He has further requested the Ministry 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 permament basis. ends
