FBR seizes records and flare-gas containers after raids on more than 70 CNG stations across 14 districts of Sindh.
HYDERABAD: The Federal Board of Revenue (FBR) has launched an enforcement operation against the alleged sale and use of flare gas as compressed natural gas (CNG) at filling stations in Hyderabad and other districts of interior Sindh.
The FBR Inland Revenue Enforcement Team conducted raids on more than 70 CNG stations across 14 districts, seizing records and containers suspected of being used to transport and store flare gas.
Chief Commissioner Inland Revenue Sajjad Akbar Khan said the operation uncovered the alleged sale and use of flare gas at CNG stations under the name of methane gas.
According to the official, containers containing cylinders filled with flare gas were also taken into custody during the raids.
Flare gas allegedly sold as CNG
Sajjad Akbar Khan said the initial investigation indicated that flare gas was being supplied and used at the filling stations as CNG despite restrictions on its use for this purpose.
He said flare gas is primarily intended for power generation, while the Oil and Gas Regulatory Authority (OGRA) has prohibited its use as CNG.
The findings have prompted the FBR to examine the supply chain and documentation associated with the suspected sales.
FBR suspects tax evasion
The enforcement team also found that some stations allegedly had no invoices documenting the purchase and sale of the flare gas, raising concerns about tax evasion and other regulatory violations.
“Initial investigations have revealed tax evasion, the estimated amount of which is currently being assessed,” Sajjad Akbar Khan said.
The FBR is examining the seized records and containers to determine the scale of the alleged activity and calculate the potential tax liability.
The authority is also expected to establish the sources of the flare gas, the businesses involved in its distribution and the volume allegedly sold to CNG stations.
Investigation continues across interior Sindh
The enforcement operation covered CNG stations in Hyderabad and other districts of interior Sindh as part of the FBR’s efforts to tackle undocumented trade, tax evasion and revenue leakage in the energy sector.
The seized documentation will be scrutinised to identify discrepancies between reported transactions and actual purchases and sales.
The investigation could also lead to further action against businesses found to have violated tax or regulatory requirements.
The FBR’s operation highlights growing scrutiny of fuel and energy transactions as authorities seek to improve documentation, prevent revenue losses and ensure compliance with applicable regulations.