A bill to amend the law relating to petroleum levy and climate support levy was presented in the National Assembly, which includes proposals to make the payment of levy mandatory for oil marketing companies, refineries and other license holders and introduce strict penalties for violation.
Federal Minister for Parliamentary Affairs Tariq Fazal Chaudhry presented the Petroleum Products (Petroleum Levy and Climate Support Levy) Ordinance, 1961 Amendment Bill in the House. The proposed amendments aim to make the legal procedures related to levy collection, payment and non-compliance more effective.
Payment of levy will be mandatory with the issuance of license
The bill proposes to make payment of petroleum levy and climate support levy a basic condition of the license of the concerned company or license holder. Under this, the concerned institutions will be bound to pay the levy from the date of issuance of the license.
According to the proposed law, refineries will have to pay the levy due on petroleum products in advance. The proposal is also to complete the payment before sending the products out of the refinery gate.
Proposal to impose surcharge on delay and suspension of license
The bill includes a proposal to impose additional surcharge for non-payment of levy on time. It is proposed to calculate it at one and a half times the six-month Karachi Interbank Offered Rate (KIBOR) or 12 percent per annum.
The proposed provisions also include a proposal to empower the Oil and Gas Regulatory Authority (OGRA) to suspend the license of the company concerned if it fails to pay the levy or surcharge due.
Imprisonment and fine for non-payment
The amendment bill proposes imprisonment for up to three years, fine or both for non-payment of levy or fine. In addition, it is proposed to provide scope for action against the directors of the company concerned.
The bill also proposes to make it mandatory for every company and refinery to submit monthly returns related to the payment of levy, which will enable monitoring of payments by the relevant institutions and checking of records.
All these measures are currently part of the proposed legislation. Its relevant provisions will be implemented only after the bill is approved and legally enforced. The presentation of this bill itself is not an announcement of an immediate increase or decrease in the prices of petrol or diesel.
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