Fuel trading plan to be implemented in two stages

The government has abandoned its proposed tax rebate schemes for heating oil and decided to delay the harmonization of tax on heating oil and diesel fuel for next year. Instead, the plan to combat illicit trade in fuels and tax evasion will be based on monitoring trading transactions, first through cross-checking on invoices and, from May 2006, through the use of a smart card. The new plan was finalized yesterday at a meeting at the Ministry of Economy and Finance, attended by the ministers of economy and finance, development and agricultural development, two deputy ministers and several lesser officials. In the first phase, from October 15 to April 30, 2006, during the sale of heating oil to end-users, the sellers will issue invoices containing the end-user’s name, address, identity card and tax registration numbers, as well as the surface of the house or apartment building. The sellers will submit complete lists of their clients to the tax authorities. Individual end-users will submit copies of the invoices together with their tax returns. In the case of apartment buildings, a VAT number will be issued for each building and the tenant appointed as manager will be responsible for the transactions. During the second phase, from May 1, 2006, the authorities will distribute smart cards to individual end-users and apartment buildings. These cards will contain the data mentioned above as well as records of previous transactions. They will be swiped into portable terminals, which the sellers must carry, to record the transaction.

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