The National Assembly and the Senate have passed “The Gas Infrastructure Development Cess Bill, 2014” to collect Rs 100 billion from gas consumers and spend the money on various energy projects. However, the opposition parties, including Pakistan Tehreek-e-Insaf, Muttahida Qaumi Movement and Jamaat-i-Islami have criticised the government on the passage of the bill, saying the gas surcharge on bills will add extra burden on the gas consumers. The opposition parties were of the view that the draft of the bill should be presented in the Council of Common Interest for consultation with the provinces before its passage. They said that it is in violation of Articles 153, 158 and 161 (a) of the constitution.
According to clause-4 of the bill, the federal government will utilise the cess on the development of Iran Pakistan Pipeline Project, Turkmenistan Afghanistan Pakistan India Pipeline Project, LNG or other projects or for price equalisation of other imported alternative fuels including LPG or for such other purposes connected therewith as determined by the federal government. However, the bill bounds the government to present an annual report with respect to the utilisation of the cess in the both houses of parliament after three months of ending each fiscal year. The cess will be recovered from big organisations and it will have no effect on the domestic consumers.
Federal Minister for Petroleum and Natural, Resources Shahid Khaqan Abbasi claims that the government requires Rs 100 billion annually to maintain and improve gas infrastructure in the country. He says that no province is self-sufficient in gas as the production of gas is 4 BCFD and demand is 8 BCFD. He says TAPI is a Rs 1 trillion project but the Pakistani share in it is Rs 100 billion. He has assured that the money collected under this head will not be misused and the parliament will oversee it.
There is no denying the fact that the government needs money to launch development projects, but it also has to plug the leakages as billions of rupees government funds syphon off every year. The government should also adopt austerity measures as billions rupees public money is spent on the presidency, the prime minister’s house, governor houses, and chief minister houses every year without any audit or accounts. It is unfortunate that the government always adopts easy way to fleece the public instead of keeping its own house in order. Now the imposition of cess will add extra burden on business and industry and will affect the cost of production.
