- The impact of the 2025 financial year should exceed 18 billion rupees.
- The industry wants a minimum tax on refineries and omc reduced to 0.25%.
- The OCAC is looking for the restoration of the powers of the commissioner’s exemption certificate.
Islamabad: The petroleum industry has submitted its budgetary proposals for the year 2025-26, urging the Federal Board of Revenue (FBR) to abolish the Super Tax, to withdraw the exemption from the sales tax and the final tax regime on the exports of petroleum products, The news reported.
In a three -page letter addressed to the President of the FBR on April 7, 2025, the Advisory Council for Oil Companies (OCAC) called for the abolition of the exemption from the sales tax introduced by financial law 2024. The exemption is currently applied to engine oil (petrol), high -speed diesel, kérosene and diesel oil.
The OCAC argued that, as oil prices are regulated, the ban on the input tax has increased operational costs and hampered the development of industry infrastructure.
The impact of the 2025 financial year should exceed 18 billion rupees, recommending that petroleum products be taxable.
Looking for the abolition of the super tax, the OCAC said that the super tax, initially introduced as a single levy, has been extended far beyond its initial scope.
In light of the current economic climate and the need to support documented and managers companies, he strongly recommended to remove the Super Tax for the 2025-26 taxation year.
The OCAC also recommended that the minimum tax applicable on refineries and WTOs will be reduced to 0.25% and abolished during the following year.
The advisory council for oil companies has also sought to restore the commissioner’s power to issue exemption certificates.