The outgoing government approved the new policy earlier this month under which existing refineries will be provided benefits for the dutyfree import of machinery that can help boost production of more environmentfriendly Euro grade fuels . The policy mandates a minimum customs duty of pc for a sixyear period on imported petrol and diesel .
This policy is expected to result in price increases of Rs. per litre for petrol and Rs.per-litre for diesel although these figures may change based on market conditions . New equipment and materials for refinery upgrades wont attract certain taxes and fees when imported .
However to get these tax breaks a refinery must show the equipment details to the Federal Board of Revenue for approval after completing the initial design study for the upgrade . A refinery must sign a legally binding upgrade project agreement with Ogra within three months .
The refineries that sign an upgrade agreement with . Ogra will not be eligible for these incentives will not qualify for these benefits . Any refineries defaulting on government dues or levies will not receive these incentives until a legallybinding and enforceable settlement is signed with the government .
Any refinery defaulting upon these incentives is not to be eligible to these incentives . The funds deposited in the escrow account are below the amount of the amount spent on the . funds deposited to be spent on a milestone or on the entire project there will be no obligation on the .
.. project . The accounts will be audited to ensure transparency and accountability. The accounts are audited by the refineries. If the funds deposited at the refinery. There is no obligation to meet the … the refiners … there is no opportunity for the refiner’s .
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