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Petroleum Products (Development Surcharge) Ordinance, 1961

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Updated: Sunday June 09, 2013/AlAhad Sha'ban 01, 1434/Ravivara Jyaistha 19, 1935, at 09:33:41 AM

The Petroleum Products (Development Surcharge) Ordinance, 1961

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XXV OF 1961

1st JULY, 1961

An Ordinance to provide for the levy and collection of a development surcharge on petroleum products and for matters connected therewith.

WHEREAS it is expedient to provide for the levy and collection of a development surcharge on petroleum products and for matters connected therewith;

NOW, THEREFORE, in pursuance of the Proclamation of the seventh day of October, 1958, and in exercise of ail powers enabling him in that behalf, the president is pleased to make and promulgate the following Ordinance:-

1. Short title, extent and commencement. (1) This Ordinance may called the petroleum products (Development Surcharge) Ordinance, 1961.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once, and shall be deemed to have taken effect on the first day of August, 1959.

2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or context,---

(1) “Company” means a company specified in the Second Schedule, [and include a person engaged in the manufacturing, refining or reclaiming of lubricating oil from used lubricating oil]

[1-A) Depot includes the premises set apart for manufacturing, refining or reclaiming of lubricating oil from used lubricating oil in any namer]

(2) “Development surcharge” means the surcharge payable under section 3;

[(3) “deferential margin” means the amount by which the fixed sale price exceeds the aggregate of the prescribed price and the inland freight margin, if any;]

[(4) “fixed sale price” means such ex-refinery sale price or, as the case may be, ex-installation, ex-retail outlet or ex-depot sale price, not exceeding the amount shown in the Third Schedule, as the Central Government may, by notification in the official Gazette, declare to be the fixed sale price;]

[(4-A) “inland freight margin” means the amount as determined in accordance with the rules made under section 6 to represent the inland transpiration expenses of petroleum products from companies, installation to their retail outlets or depots;]

[(4-B) “installation” means such premises set apart for the storage of petroleum products as the Central Government may, by notification in the official Gazette, declare to be an installation for the purposes of this Ordinances;]

(5) “Petroleum Product” means any petroleum product specified in the First Schedule;

(6) “Prescribed price” means ex-refinery price or, as the case may be, the ex-installation, ex-retail out-let or ex-depot, sale price as determined in accordance with the rules made under section 6; and

[(7) “refinery” means a refinery specified in the Fourth Schedule].

3. Levy of Development Surcharge (1) Subject to the provisions of this Ordinance, ever refinery and every company shall pay to the Central Government a development surcharge equal to the differential margin in respect of petroleum products produced or, as the case may be, purchased by it for resale except for export.]

(2) The development surcharge in respect of the period commencing from the first day of August, 1959, and ending on the day this Ordinance is promulgated shall become payable immediately on such promulgation.

(3) Any amount due as development surcharge under subsection (1) or arrears thereof under sub-section (2) and not paid within the time allowed by the Central Government or any officer, authorized by it in that behalf shall be recoverable as arrears of land revenue.

3-A Power to grant exemption from payment, authorise refund and procedure for collection and refund of surcharge. (1) Subject to such conditions, limitations or restrictions as it may think fit to impose, the Central Government may, in such general cases as it may prescribe by rules or in particular cases by special order, exempt a refinery or company from the payment of the development surcharge in respect of all or any of the petroleum products or authorise the refund in whole or in part of the development surcharge paid by a refinery or company.

(2) Subject to any rules made under this Ordinance, the development surcharge shall be collected,---

(a) in respect of imported petroleum products, in the same manner as an imported duty payable under the [Custom Act, (IV of 1969)] is collected; and

(b) in respect of petroleum products produced in Pakistan, in the same manner as a duty of excise leviable under the Central Excises and Salt Act, 1944 (I of 1944), is collected.

(3) The provisions of the Customs Act, 1969 (IV of 1969), or as the case may be, the provisions of the Central Excises and Salt Act, 1944 (I of 1944), shall, so far as may be, apply to the levy, collection and refund of the development surcharge].

4. Maximum sale price. (1) Notwithstanding anything contained in any other law, no company shall sell [ex-refinery, ex-installation, ex-ratial outlet or ex-depot] any petroleum product at a price higher than the fixed sale price.

(2) A contravention of sub-section (1) shall be deemed to be a contravention of an .order made under section 3 of the [Price Control and Presentation of profiteering and Hoarding Act, 1977 (XXIX of 1977] Essential Supplies Act, 1957, and all the provisions of that Act shall have effect accordingly.

(3) Nothing in this Ordinance shall be deemed to have or ever to have had the effect of retrospectively creating any offence or of retrospectively enhancing the punishment for any offence provided in any law for the time being in force.

5. Allowance to be made for development surcharge for purposes of income-tax. Notwithstanding anything contained in any other law, the amount of the development surcharge paid by a company under section 3 shall be an expenditure for which allowance is to be made in computing profits or gains under [Section 23 the Income-tax Ordinance 1979 XXXI of 1979.

6. Power to make rules (1) The Central Government may, by notification in the official Gazette, make rules for carrying out the purposes of this Ordinance and any such rules may be retrospective from any date not earlier than the first day of August, 1959.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide,---

(a) for the determination of the [fixed sale price and] prescribed price;

[(aa) for the determination of the inland freight margin.

[(aaa) for the manner of payment and refund of, and exemption from the payment of the development surcharge;]

(b) for any other matter for which there is no provision or no sufficient provision in this Ordinance and for which provision is, in the opinion of the Central Government, necessary in order to give effect to the purposes of this Ordinance.

7. Power to amend Schedules. The Central Government may, from time to time, by notification in the official Gazette, make such amendments and modifications in the Schedules as it thinks fit.

[8. Delegation of powers. - The Central Government may, by notification in the official Gazette, direct that all or any of its powers under this Ordinance or the rules made thereunder shall, in such circumstances and under such conditions, if any, as may be specified in the direction, be exercised also by an officer or authority subordinate to the Central Government].

THE

FIRST SCHEDULE

List of petroleum products
[see section 2(6)]

Nomenclature in common Nomenclature in common use In Pakistan use in internationally by the Oil industry and as S.Noused in platt’s Daily Reporting Service.

1. Aviation Spirit 73 On u/l Avgas Grade 73 clear

2. Aviation Spirit 100/130 ON Avgas Grade 100/130

3. Aviation Spirit 115/145 ON Avgas Grade 115/145

4. Aviation Turbine Fuel Turbine Fuel 1(--56F)

5. Motor Spirit 79 Octane

6. Vaporising Oil Tractor Vaporizing Oil.

7. Superior Kerosene. Kerosene.

8. Inferior Kerosene. No. 2 Fuel

9. High Speed Diesel 48-52 Diesel Index

10. Light Diesel Oil (90% No.2 Fuel, 10%

Bunker “C” Fuel)

11. Furnace Oil. Bunker “C

12.Lubricating oil including Base Oils and Lubricating oil reclaimed from used Lubricating oil MVI, HVI, LVI

[13. Asphalt Bitumen Asphalt/Cutback Asphlt.]

[14. Jute Batching Oil]

[15. Automotive Gas 100 Oct]

16. Omitted by the S.R.O. 166

(1) 1/71 dated 22nd May 1971.

7. Motor Gasoline 90 Octane R. Motor Gasoline 90R]

[18.JP-4----------------------]

19.All types of Naphtha/Solvent

THE

SECOND SCHEDULE

List of Companies

1. M/s. Pakistan State Oil Company Ltd,

2. M/s. Caltex Oil (Pakistan) Ltd.

3. M/s. Pakistan Burmah Shell Ltd.

4. Attock Refinery Ltd.

5. Pakistan Peoples Product Corporation, Karachi.

6. M/s. Jamia Industries Ltd. Karachi.

7. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.

8. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.

9. M/s. Pakistan Grease Manufacturing Company Ltd., Karachi.

10. M/s. Technical Oil Manufacturing Company Ltd., Karachi.

11. M/s. Petroleum Industries of Pakistan Ltd., Baldhar Haripur Hazara.

12. M/s. Baluchistan Lubricants Blenders Ltd., Hab Chowki, Ditrict Lasbella.

13. M/s. Aremai Petroleum Ltd., Lahore.

14. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.

15. Omitted by the Federal Adaptation of Laws Order, 4 of 1975.

[16. M/s. Karachi Lubricant, Ibrahim State D-1/Block 7-B, Karachi Corporative Society, Lahore.

17. M/s. Ashrat Lubricant Company Ltd., Chack Jhemra Road near Ghatti Railway Station, Faisalabad.]

THE

THIRD SCHEDULE

See section 2(4)

[1. Aviation Gasoline 110/145 2.53

2. Aviation Gasoline 100/130 2.53

3. H.O.B.C. [2.92]

4. Octane [10.00]

5. Motor Gasoline [2.32]

6. Jp - 1 2.31

7. S. D. 1.43

8. D.O. 1.43

9. Kerosene Superior 1.43

10. Lubricating Oil including Base Oil and 15.00

Lubricating Oil reclaimed from used Lubricating Oil.

11. Furnace Oil [800.00]

Rs. Per litre

12. Base Oil [4500.00]

Rs. Per metric ton.

13. Asphalt (exclusive of the cost of drums). [1200.00]

Rs. Per litre

14. JP-4 4.80]

THE

FOURTH SCHEDULE
List of refineries

[See section 2(7)]

1. Attock Oil Refinery. Rawalpindi

2. Pakistan Refinery Ltd., Karachi

3. National Refinery Ltd., Karachi

4. Eastern Refinery Ltd., Chittagong,]

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