Senate Committee Uncovers Alleged Tax Evasion by Oil Marketing Companies During Iran-US Conflict

A meeting of the Senate Standing Committee on Cabinet Secretariat revealed allegations of large-scale tax evasion by Oil Marketing Companies (OMCs) during the Iran–US conflict, prompting authorities to launch an audit and investigation.

Customs officials informed the committee that an audit of the matter has been ordered, while the **Federal Board of Revenue (FBR)** has decided to investigate two OMCs for allegedly selling petroleum products without paying the required duties.

The committee meeting, chaired by **Senator Rana Mahmood ul Hassan**, was held at the Establishment Division committee room. During the session, members approved the **Civil Servants (Amendment) Bill 2026** and proposed referring the issue of officers serving on deputation to the federal cabinet.

Briefing the committee, customs officials said the petroleum levy witnessed significant fluctuations during the conflict, and information was received regarding delayed duty payments by several companies. Officials stated that most oil marketing companies are believed to have been involved in the practice.

According to customs authorities, OMCs sold petroleum products through dealers and paid the applicable duties only afterward, meaning funds that should have been deposited into the national treasury earlier were paid at a much later stage.

Officials added that transporting petroleum products without first paying the required duties is a violation of the law. They alleged that some companies lifted petroleum supplies before making payments and later cleared the duties after the levy rate had decreased. The alleged irregularities came to light when the **Oil and Gas Regulatory Authority (OGRA)** received subsidy claims from the companies, leading to further scrutiny.