Petroleum dealers want tax concession on Economic Service Charge

The Petroleum Dealers' Association (PDA) met Minister of Railways and Transport, Petroleum and Petroleum Resource Development A.H.M Fowzie and the newly appointed CPC Chairman Ashantha de Mel recently to discuss the petroleum business and connected issues.

The Administrative Secretary of the PDA Asoka Mallawarachchi told Daily News that PDA was requesting for a tax concession on the Economic Service Charge (ESC) imposed on petroleum dealers, during the meeting.

The Government imposed a one percent tax on the total revenue as ESC but dealers were not in a position to pay ESC due to the high operational cost.

But the PDA has agreed to pay one per cent as the tax through the commission they received from the CPC for fuel distribution without paying one percent through the total revenue.

During the discussion the Minister promised to take up this issue for the relevant authorities. They also discussed the new sealing systems of the bowsers to lift the oil through the bowsers.

Plans are also being made to meet petroleum dealers each month by the CPC Chairman Ashantha de Mel to discuss the issues in the petroleum business, Mallawarachchi said.

The PDA is happy about this initiative and expects to present the problems the industry faces at the next meeting to the CPC Chairman, he said.

'There are more than 1200 filling stations in the country. Most of the stations make money through lubricants.

According to the Central Bank, Sri Lanka has imported 2,008,000 metric tonnes of Crude oil to the value of Rs 77,795 million last year.

The import of refined products was recorded as 1,823,000 metric tonnes to the value of Rs 88,767 million in 2005.

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