Refineries and E&P - Budgetary Steps

Refineries and E&P - Budgetary Steps

Recipient of services

The liability of recipient of excisable services to pay duty has been established. Accordingly, an enabling provision has been made to charge duty from the recipient of services coming from abroad and terminating in Pakistan.

Reduction of duty on lubricating oils

Duty rate on base oil for lubricating oils reduced from 20% to 10%.

Impact - Negative for refineries
• The slashing of duty on lube base oils would depress the Gross Refining Margins (GRMs) of National Refinery Ltd. - the only lube producer in the country - and hence bode negatively for the local refinery.Refinery