ISLAMABAD: After Rs1.2 billion tax evasion by Huaneng Fuyun Ports & Shipping (Private) Limited, Huaneng Shandong Ruyi (Pakistan) Energy Private Limited has for the first time disassociated itself from the company.
Huaneng Shandong Ruyi has written a letter to Huaneng Fuyun Ports to change its name, according to a company’s official. He said Huaneng Fuyun Ports & Shipping (Private) Limited (the “coal handler”) is not directly or indirectly owned by China Huaneng Group.
Huaneng Fuyun Port company handles coal for Huaneng Shandong Ruyi (Pakistan) Energy Private Limited that operates the 1,320-megawatt Sahiwal power plant.
The company official further said the issue of similarity in their names had been raised internally with Huaneng Fuyun and it was formally asked to change the name after Rs1.2 billion tax evasion case.
Earlier, Pakistan’s customs authorities caught the Chinese company that supplies coal to the Sahiwal plant evading Rs1.12 billion in taxes on its imports. Despite the fact that the company admitted its fault and deposited Rs1.2 billion in the exchequer last month, the Federal Board of Revenue (FBR) is reluctant to register a criminal case against Huaneng Fuyun Shipping Company owing to ‘national interests’.
However, a company handout stated that the coal handler does not fall under the China-Pakistan Economic Corridor (CPEC). The company official said that the FBR can register an FIR against the port handler for tax evasion, as evasion of taxes was detrimental for the CPEC initiative.
The company handout underlined that China Huaneng Group should be appreciated for providing the necessary energy to the national grid system, achieved scheduled energization in a record time of twenty-two (22) months of the Sahiwal Power Plant.
Published in The Express Tribune, June 16th, 2018.