ISLAMABAD: Local industrialists in a meeting at Islamabad Chamber of Commerce & Industry strongly resented the re-imposition of Gas Infrastructure Development Cess (GIDC) through an Ordinance as it would put negative impact on the country’s economy and called upon the government to immediately withdraw GIDC to save the business and industry from its harmful consequences.
Addressing the meeting, ICCI President Muzzamil Hussain Sabri said that Peshawar and Sindh High Courts had already issued judgments against the imposition of GIDC while the Supreme Court of Pakistan had also refused to give legal cover to GIDC and now Lahore High Court have issued a stay order against GIDC Ordinance 2014. He said after these decisions, there was no legal justification to re-impose this tax through an Ordinance.
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He said the main purpose of levying GIDC was to mobilise funds for the development of gas infrastructure for Iran-Pakistan (IP) and Turkmenistan Afghanistan Pakistan India (TAPI) Pipeline projects. However, the government has so far failed to start any work for the development of gas infrastructure for the said projects and it should immediately withdraw GIDC as collection of tax without undertaking any work on planned projects was unjustified.
Muzzamil Sabri said the government had set a tax collection target of Rs.145 through GIDC during this fiscal year while it has collected about Rs.84 billion from consumers under this tax since 2011. He stressed that after the High and Supreme Court’s decision, the government should refund the whole collected amount to the consumers. He said the re-imposition of GIDC was bound to dampen the growth of various sectors like industry, exports and agriculture as it would enhance the cost of production and make our products un-competitive in international market.
