Afghanistan wishes to import furnace oil from Pakistan
Thursday, May 17th, 2012 6:08:38 by Wajahat Javed
Afghanistan wishes to import furnace oil from Pakistan
Wednesday, May 16, 2012: Afghanistan has formally requested Pakistan to permit the import of furnace oil to the country, as they want to meet the requirement of its power plants.
An official associated with issue said, “The government charges General Sales Tax (GST) on use of furnace in local power plants and Afghanistan will have to pay the same if exports are allowed.”
Pakistan’s furnace oil demand is 9 to 10 million tons per year. Local oil refineries produce 2.5 million to 3 million tons per year while the remaining amount is met through imports.
Afghanistan’s request of 12,000 tons of furnace oil import coincides with talks between Pakistan and the US on resumption of Nato supplies, said a senior official of the petroleum ministry.
Pakistan has suspended supply of goods, including oil, to Nato forces due to a stand-off with the US since attacks on two Salala checkposts on November 26, 2010 which killed 24 soldiers. Pakistan was exporting subsidised petrol,
high speed diesel (HSD) and jet fuel to Nato forces.
At present, Afghanistan is importing 300 megawatts each from Uzbekistan and Tajikistan, 80 megawatts from Turkmenistan and 188 megawatts is being generated from Afghan power plants. Afghanistan has a surplus of power as its demand
stands at 240 megawatts.
“If Afghanistan wants furnace oil, it will have to pay all applicable taxes on furnace oil in Pakistan,” a government official said.
In December 2011, Economic Coordination Committee (ECC) banned export of locally produced high speed diesel and petrol to Afghanistan. ECC also decided that Afghanistan would have to pay all applicable taxes including petroleum
levy and general sales tax (GST) if it imported these products in the future.
Kabul has been lobbying to allow duty-free import of oil but Ministry of Petroleum and Natural Resources in a letter to Ministry of Commerce wrote that it will have to pay all duties applicable to petroleum products in Pakistan.
Tags: , Afghanistan, Days and Nights In the Forest, furnace oil
Short URL: https://www.newspakistan.pk/?p=22530
Posted by Wajahat Javed
on May 17 2012. Filed under Business, Pakistan, USA.
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