Abolishment of CDC: CCoTL seeks report on impact
- Directs Pakistan LNG Limited to make a presentation on the impact of cost savings passed on to the consumers due to the abolishment of Channel Development Cess
ISLAMABAD: The Cabinet Committee on Transport and Logistics (CCoTL) has directed Pakistan LNG Limited (PLL) to brief it on the impact of cost savings passed on to the consumers due to abolishment of Channel Development Cess (CDC), well-informed sources told Business Recorder.
These instructions were issued at a recent meeting of the Committee presided over by Minister for Maritime Affairs, Ali Zaidi, when the issue of charges collected on Ports on hydrocarbons was raised.
The CCoTL was briefed on all charges collected on LNG and petroleum products at the port along with the comparative analysis of charges collected by the regional ports. It was apprised that 19% port charges had already been abolished by PQA and would be further reduced, if at all, after the report of M/s Yousuf Adil & Co. Chartered Accountants (formerly Deloitte). According to sources, the Committee was informed that the decision regarding abolishment of the Channel Development Cess was to reduce the cost of RLNG for consumers.
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It was noted that the benefits of abolishing the Channel Development Cess have been passed on to the consumers by the Pakistan State Oil (PSO). However, it could not be verified in case Pakistan LNG Limited (PLL) due to lack of any cost break up. The Committee conveyed its serious concerns on the issue.
After detailed discussion on the issue, the CCoTL constituted a committee under the Chairman of Secretary, Ministry of Maritime Affairs, and comprising of Additional Secretary, Petroleum Division, Chairman OGRA, Chairman PQA, and Chairman, KPT, which will deliberate on the issue of port congestion due to arrival of vessels/ ships carrying hydrocarbons and make recommendations to streamline the process. The Ministry of Maritime Affairs will provide secretariat support to the committee.
The CCoTL also directed Pakistan LNG Limited (PLL) to make a presentation on the impact of cost savings passed on to the consumers, due to the abolishment of Channel Development Cess (CDC).
Copyright Business Recorder, 2022
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