ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that the government is negotiating with the CNG sector to settle the outstanding gas infrastructure development cess (GIDC) dues.
“The government could not waive any tax on its own as any settlement regarding recovery of the outstanding GIDC could only be made through the parliament,” he apprised the Senate Special Committee Monitoring Implementation of the GIDC Bill-2015.
He said that the CNG stations had collected the GIDC as per notified tariff of Oil and Gas Regulatory Authority (OGRA) – but have not paid the amount.
All Pakistan CNG Association (APCNGA) representatives – led by Ghiyas Abdullah Paracha – apprised the Senate body that they held meetings with the officials of petroleum and financeministries and offered to pay Rs 10 billion against the total around Rs 32 billion outstanding amount to settle the GIDC payment issue.
Committee Chairman Ilyas Ahmad Bilour was of the view that the GIDC was meant for the gas infrastructure development but it was not being utilised appropriately.
Abbasi also brushed aside the impression and said that the GIDC was being spent judiciously and said that a gas pipeline from Karachi to Lahore was being laid at an estimated cost of Rs 1,500 billion to transport Liquefied Natural Gas (LNG).
The ministry took the stance that the GIDC Act 2015 – as passed by the parliament – provided that the cess collected by the company from gas consumers – under the GIDC Act 2011 and GIDC Ordinance 2014 – would be valid under the provisions of the GIDC Act 2015.
“Therefore, the question of not paying the cess retrospectively does not arise,” the body said unanimously.
The committee suggested that there should be a certificate from authorities like the Federal Board of Revenue (FBR) or chartered accountant firms whether any entity collected the GIDC from consumers or not – directing the concerned to devise a mechanism accordingly.
