The News reported that the Ministry of Petroleum has directed the Federal Board of Revenue to restore the bank accounts of Pakistan State Oil with immediate effect which were frozen as the state oil company had failed to meet its tax obligations.

Sources said that the Ministry of Petroleum has directed the large taxpayers unit to restore the bank accounts of PSO and a meeting of PSO officials, tax officials and the ministry has been convened to sort out the issues.

PSO had been served with several notices for a total defaulted tax amount of over PKR 9 billion but PSO expressed its inability to make a lump-sum payment and deposited only PKR 100 million in the national exchequer forcing the revenue body to freeze its accounts.

Tax department sources said that PSO has outstanding dues of PKR 7.5 billion of sales tax and PKR 1.5 billion income tax to the FBR. Meanwhile, a PSO spokesperson said that with the total receivables hovering over PKR 170 billion, the financial situation of the company had become extremely precarious. This has resulted in the company to default on its tax obligations.

The spokesperson said that PSO is one of the largest contributors to the national tax exchequer and the recipient of numerous tax awards for always making timely payments to the tax authorities. These astounding receivables have also constrained the company in effective maintenance of substantial POL stocks.

Furthermore, the local refineries have stopped fuel supplies to PSO due to outstanding payments of approximately PKR 100 billion resulting in heavy reliance of the company on imports. The company owes approximately PKR 49 billion to the international fuel suppliers and has to meet this commitment.

(Sourced from www.thenews.com.pk)