ISLAMABAD (November 20 2002) : The issuance of SRO on exemption of GST/duty on CNG kits and cylinders would take another 7 to 10 days as the Central Board of Revenue (CBR) is legally bound to consult Ministry of Petroleum and Natural Resources before notifying the decision.
The petroleum ministry would examine the new notification in light of ECC decision and than hand it over to the CBR for issuance. This would further complicate the process as CNG investors were already paying heavy demurrages on imported consignments, which were not being lifted due to issuance of exemption SRO.
Official sources told Business Recorder on Tuesday that the custom authorities have finalised the new notification as per revised ECC decision submitted through the Ministry of Petroleum and Natural Resources.
The petroleum ministry has conveyed to the CBR that Economic Co-ordination Committee (ECC) of the cabinet slashed the time period for exemption of custom duty and sales tax up to June, 2004, superseding its earlier decision, which extended exemption till October, 2007.
The CBR has drafted a new notification as per new ECC directive, but it could not solely notify the decision because the exemption has been granted on the summary moved by the petroleum ministry. It is compulsory for the tax authorities to take concurrence of ministry before issuing SRO.
Sources added that CBR strongly opposed the exemption. Legally, the department is bound to show the SRO to the petroleum ministry before final notification.