Govt rejects out of court settlement
Tax dispute involving Rs14b to be decided in court, says petroleum adviser.
ISLAMABAD:
The government has rejected the proposal of oil and gas exploration and production companies for an ‘out of court’ settlement of a tax dispute involving Rs14 billion taxes.
According to sources the oil and gas exploration companies had offered the Petroleum Ministry, Federal Board of Revenue (FBR) and Finance Ministry to settle the dispute out of court.
“However, during a meeting chaired by Special Assistant to the Prime Minister for Petroleum and Natural Resources Dr Asim Hussain, the offer was rejected,” sources said.
Earlier, the Federal Board of Revenue and Exploration and Production Companies (E&P) had signed a Memorandum of Understanding (MoU) to settle issue of taxes dispute with the companies. Under MoU, companies were supposed to pay Rs5-6 billion March 31, 2010 but they failed to meet this deadline. The matter has been in court since then.
When contacted Dr Asim Hussain, Special Assistant to the Prime Minister for Petroleum &Natural Resources said that the court will decide the fate of the tax dispute with oil and gas exploration companies.
In a statement issued here, Hussain said that the government intends to provide a professional and friendly investment environment to private oil and gas companies. He said this while chairing a meeting of the Exploration & Production (E&P) Companies on Wednesday here in Islamabad.
Adam Thomson British High Commissioner in Pakistan attended the meeting on the special invitation of Muhammad Ejaz Chaudhry Secretary Petroleum and Natural Resources. Senior officers of the Ministry of Petroleum and Natural Resources, Ministry of Finance and Federal Board of Revenue (FBR) also attended the meeting.
Representatives of Tullow Pakistan (Developments) Ltd, Shell Pakistan Ltd, BP Pakistan Exploration and Production Inc and Premier Oil attended the meeting and presented issues pertaining to gas development Surcharge and taxation.
Dr Asim Hussain reiterated that the Ministry of Petroleum and Natural Resources would facilitate exploration and production companies in every respect and a follow up with FBR and Finance Division would be ensured.
Published in The Express Tribune, February 23rd, 2012.
The government has rejected the proposal of oil and gas exploration and production companies for an ‘out of court’ settlement of a tax dispute involving Rs14 billion taxes.
According to sources the oil and gas exploration companies had offered the Petroleum Ministry, Federal Board of Revenue (FBR) and Finance Ministry to settle the dispute out of court.
“However, during a meeting chaired by Special Assistant to the Prime Minister for Petroleum and Natural Resources Dr Asim Hussain, the offer was rejected,” sources said.
Earlier, the Federal Board of Revenue and Exploration and Production Companies (E&P) had signed a Memorandum of Understanding (MoU) to settle issue of taxes dispute with the companies. Under MoU, companies were supposed to pay Rs5-6 billion March 31, 2010 but they failed to meet this deadline. The matter has been in court since then.
When contacted Dr Asim Hussain, Special Assistant to the Prime Minister for Petroleum &Natural Resources said that the court will decide the fate of the tax dispute with oil and gas exploration companies.
In a statement issued here, Hussain said that the government intends to provide a professional and friendly investment environment to private oil and gas companies. He said this while chairing a meeting of the Exploration & Production (E&P) Companies on Wednesday here in Islamabad.
Adam Thomson British High Commissioner in Pakistan attended the meeting on the special invitation of Muhammad Ejaz Chaudhry Secretary Petroleum and Natural Resources. Senior officers of the Ministry of Petroleum and Natural Resources, Ministry of Finance and Federal Board of Revenue (FBR) also attended the meeting.
Representatives of Tullow Pakistan (Developments) Ltd, Shell Pakistan Ltd, BP Pakistan Exploration and Production Inc and Premier Oil attended the meeting and presented issues pertaining to gas development Surcharge and taxation.
Dr Asim Hussain reiterated that the Ministry of Petroleum and Natural Resources would facilitate exploration and production companies in every respect and a follow up with FBR and Finance Division would be ensured.
Published in The Express Tribune, February 23rd, 2012.