FBR finds major fuel tax evasion 8,348 metric tons of petrol unaccounted for

Pakistan’s oil industry is in turmoil over a large tax evasion scandal as thousands of metric tons of imported petrol have reportedly disappeared from a customs bonded storage causing a big loss to the national exchequer.

Official papers have revealed that a private petroleum company, in a clandestine operation, allegedly lifted petrol worth Rs2.38 billion from a customs bonded warehouse causing an estimated loss of Rs1.25 billion to the national exchequer in the shape of unpaid duties, taxes and levies.

The suspected tax evasion was discovered during the inspection of the corporation’s imported petroleum shipments. The discrepancy was reportedly discovered during a physical inspection of goods at the customs bonded facility of Bin Qasim Port.

The documents state the corporation has imported petrol in three consignments totalling 18,048 metric tons. During physical verification of stock, the bonded warehouse had 9,699 metric tons of petroleum but the company’s stock was short by 8,348 metric tons.

Private companies are doing research. The documents also reveal that PEPCO has been ordered to produce records in the probe.

This is not the first time a petroleum business is embroiled in a multi-billion-rupee tax evasion case. In another example, the Federal Board of Revenue (FBR) recovered approximately Rs5 billion from a petroleum business.