Oil, Gas and Refinery Sectors - updates

[mythbuster]

They were asking for sales tax exemption on capital goods for the refinery upgrade project which had made the whole brown field refinery policy ineffective.

Once the upgrade happens which will make these refineries deep conversion type in about 4-5 years, they will be able to convert most of the crude into positive margin products instead of 30-40% RFO.

This will also spur (hopefully) downstream industries like polypropylene manufacturing and pharma API production.

What you are saying is partially correct , HSD and gasoline products being imported don't pay sales tax on their inputs.... Google zero rating taxes to understand what I am saying.

 

[Bilal]

What you are saying is partially correct , HSD and gasoline products being imported don't pay sales tax on their inputs.... Google zero rating taxes to understand what I am saying.

That’s a distortion. it should have been addressed. This is the same case with textile value chain.

But that’s odd as there is now VAR regime in all gulf countries. Of course it might be lower or may fall in exempt category.