The total tax contribution of E&P companies Pakistan

December 9, 2012 | By More

As part of Pakistan Petroleum Exploration and Production Companies Association’s work to quantify the economic contribution to the Exploration & Production E&P companies for which Total Tax Contribution methodology was applied for member companies activities in Pakistan. The results are very revealing and importantly assist the sector to be more open and transparent about the very substantial contribution it continues to make to the Government Treasury via taxation borne, employment generated and collection of Sales Tax, Excise duties and acting as withholding agent for Federal Board of Revenue (FBR).

As the report shows, the oil and gas sector is one of the biggest industrial investor in the country. It provides well paid, high quality, and high skilled jobs, these are exactly what are needed when we look to re-balance the country’s economy.

Pakistan needs substantial investment in order to maximize hydrocarbon recovery and economic activity. If the rate of investment slows down, unit costs will escalate rapidly, leading to the early closure of much of infrastructure. Yet, investment is highly dependent on business confidence. Besides the deteriorating security situation, political uncertainty, fiscal instability, the recent decision by the Appellate Tribunal of the inland Revenue has damaged the confidence of the investors in this sector.

For more details, download the complete report.

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Category: Energy

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