Tax on fuel to NATO forces - Good Work Musharaf !

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Urdu Version

English Version: Source THE NEWS


ISLAMABAD: In a move fraught with strategic and diplomatic consequences, Pakistan has stopped all supplies of motor spirit (petrol) and high-speed diesel to the US Defence Energy Supply Company, which is catering to the energy requirements of Nato forces in Afghanistan.

The ban has been implemented with immediate effect, a senior official at the Ministry of Petroleum and Natural Resources told The News. It has also come to the fore that up


until now, the US Defence Energy Supply Company was being provided petrol and high-speed diesel without the petroleum levy and Generate Sales Tax, which is otherwise being levied on hapless Pakistani consumers. Simple calculations reveal that Nato forces were being provided the said two products Rs22-25 per litre cheaper than that being charged from local consumers.

According to an official of the Ministry of Petroleum, Pakistan had been extending the supply of the POL products at subsidised rates to Nato forces since 2002-03 and in the process had sustained a colossal loss of Rs35 billion. In addition, in the wake of the supply of cheaper POL products to Afghanistan, 40 to 50 percent dumping of petroleum products was also going on - because of which the country was braving a huge loss in this head as well. Minister for Petroleum and Natural Resources Dr Asim Hussain confirmed that six oil-marketing companies including Pakistan State Oil, Attock Petroleum Company, Total-Parco, Shell and Byco had been directed to stop the supply of petrol and high-speed diesel. “However, jet fuel will continue to be provided to the US,” the minister said, adding that this was being done because there was no levy in Pakistan on jet fuel. According to another official at the Ministry of Petroleum and Natural Resources, Pakistan had been exporting 150,000 tones of high-speed diesel, 100,000 tones petrol and 850,000 tones jet fuel per year.

The experts opined that though it is a belated decision, it will have a positive impact on the availability of petroleum products in Pakistan, since the country’s refineries were earlier exporting petrol and diesel owing to which PSO had to spend precious foreign exchange to import the said products to cater to domestic needs. He said that the action taken by the minister was a bold and positive step. He said that in case the US energy supply company in Afghanistan offered to pay the same taxes on POL products which other Pakistanis were paying, the resumption of supplies could be reconsidered. “The huge loss of Rs35 bn sustained by Pakistan due to the non-payment of the usual levies etc. should be compensated by the company.” On this, minister said in case the US company sought the restoration of supply with an offer of payment of all future taxes as well as payment of previous tax dues since 2002-03, he would be ready to negotiate.

 

[Major Sam]

geo musharaf

 

[Nothing]

Why so much love for them ? How much he got in his bank account or more like " you can rule Pakistan for more one year for each
XXXXX liters of Petrol at cheaper price "
No "geo musharaf" Say geo our useless, low life , public blood sucker politicians ..

 

[lem34]

Its about time pakistan govt was assertive and implemented the type of policies its people want and stop pandering to americans

 

[rockstarIN]

ISLAMABAD: In a move fraught with strategic and diplomatic consequences, Pakistan has stopped all supplies of motor spirit (petrol) and high-speed diesel to the US Defence Energy Supply Company, which is catering to the energy requirements of Nato forces in Afghanistan.

The ban has been implemented with immediate effect, a senior official at the Ministry of Petroleum and Natural Resources told The News. It has also come to the fore that up


until now, the US Defence Energy Supply Company was being provided petrol and high-speed diesel without the petroleum levy and Generate Sales Tax, which is otherwise being levied on hapless Pakistani consumers. Simple calculations reveal that Nato forces were being provided the said two products Rs22-25 per litre cheaper than that being charged from local consumers.

US may be ready to pay levy on Petrol, but will minus it from the aid amount and balance only will get.

 

[AgNoStiC MuSliM]

US may be ready to pay levy on Petrol, but will minus it from the aid amount and balance only will get.

That would be great - then US politicians and commentators can stop ranting about 'aid to Pakistan'.

BTW, the $20 Billion figure quoted, as pointed out often, includes aid committed, not disbursed.

I believe only a few hundred million out of the 7.5 billion KLL funds have actually been disbursed, and the US owes Pakistan $2.5 Billion in CSF reimbursements, which would in fact be for expenses (such as fuel supplies etc.) incurred by Pakistan in support of US operations in Afghanistan.

 

[DESERT FIGHTER]

LANAT........

 

[BATMAN]

This is known story, as long Musharraf ruled every thing was under control, and relations with US were on basis of partnership, various deals were signed in exchange for co-operation and Pakistan was declared partner of US & NATO.

Unfortunately, since Musharraf left, control on every thing collapsed. NATO/US started to profit by selling Pakistani petrol to Indian army, airlines and contractors, inside Afghanistan.

If present govt. can sign new agreements with US/NATO/India for transit aid than why can't they re-define the terms of this deal? Specially when US is not reimbursing the expenses of WOT as per the contracts with Musharraf!

 

[Hulk]

well Pakistan should tax fuel, why not is beyond reasoning.

 

[Abu Zolfiqar]

That would be great - then US politicians and commentators can stop ranting about 'aid to Pakistan'.

BTW, the $20 Billion figure quoted, as pointed out often, includes aid committed, not disbursed.

I believe only a few hundred million out of the 7.5 billion KLL funds have actually been disbursed, and the US owes Pakistan $2.5 Billion in CSF reimbursements, which would in fact be for expenses (such as fuel supplies etc.) incurred by Pakistan in support of US operations in Afghanistan.

the figure is around $315 million (of that amount you mentioned)



as for the article -- well it's about time....that's all i can say. The politicians are incredibly DUMB for not being more assertive or creative in this issue. They should also impose a tax on the heavy trucks --which put potholes on the road and create more pollution as well.

it isn't nitty and gritty....it's simply called being smart and standing by ones own interest.

 

[Emmie]

That would be great - then US politicians and commentators can stop ranting about 'aid to Pakistan'.

BTW, the $20 Billion figure quoted, as pointed out often, includes aid committed, not disbursed.

I believe only a few hundred million out of the 7.5 billion KLL funds have actually been disbursed, and the US owes Pakistan $2.5 Billion in CSF reimbursements, which would in fact be for expenses (such as fuel supplies etc.) incurred by Pakistan in support of US operations in Afghanistan.

If I may add something in KLL funds? Only $ 0.6 or 0.8 million disbursed so far (out of $ 3 billion in two years, $ 1.5 billion each year) not few hundred millions sir.
Source: Senator Tariq Azeem, member of defence committee, briefed by COAS yesterday.

Tax on fuel to NATO forces - Good Work Musharaf !

Such a generous government!!!

 

[Emmie]

well Pakistan should tax fuel, why not is beyond reasoning.

Not only on fuel, also on NATO containers. Imagine!! NATO pays only Rs. 410 per container (custom+ security, from Karachi to boarder)

 

[Emmie]

US may be ready to pay levy on Petrol, but will minus it from the aid amount and balance only will get.

Something for you, surely you'll be helped a lot.

The Coalition Support Fund was established by the United States in 2001 to support 27 nations, including Pakistan, for some of the costs they incur in the fight against extremist violence.

Since 2001, the U.S. has reimbursed Pakistan $7.4 billion for these costs ($2.5 Billion in CSF reimbursements is still due).

Since 2001, the United States has provided $11 billion to Pakistan in security assistance and CSF reimbursements

According to Kerry-Lugar bill - US will give aid of $ 7.5 billion over 5 year period, $ 1.5 billion every year. It has been more than 2 years now since the bill was passed, only $ 0.6 0r 0.8 million have been disbursed.

Now some mathematics.

Total CSF to be disbursed = $ 10 billion (disbursed amount 7.4 billion, 2.5 billion still outstanding) -2.5 billion

Exemption from petrol levy (Petrol to NATO without tax) = Rs. 338 Billion (almost $ 4 billion) -4 billion

Total Amount provided by US since 2001 = 11 + 0.8 billion (KL funds)

I leave rest of the maths for you.

 

[westtowel]

This Tax money will Encourage the Pakistanis to continue the war and kill off the taliban, who attack the oil tankers.

Is Extension of the war and killing of taliban in pakistans interests.