The government has decided to amend Gas Infrastructure Development Bill Act 2011 to recover stuck amount of Gas Infrastructure Development Cess (GIDC) from the CNG sector, official sources told Business Recorder. The decision was taken at a recent meeting of Federal Cabinet presided over by the Prime Minister Shahid Khaqan Abbasi.
The Petroleum Division has directed to move a bill in Senate at the earliest, the amount will be recovered in tranches. First tranche would be recovered in one month after the passage of the bill and second tranche would be recovered within three months after the passing of bill from the Parliament.
According to available details, the sources said, Petroleum Division submitted a summary on "Gas Infrastructure Development Cess Recovery from CNG Sector" for consideration by the Federal cabinet. The summary was later referred to Cabinet Committee on Disposal of Legislative Cases (CCLC) for consideration. The CCLC in its meeting held on November 02, 2017 considered the summary and recommended approval from the cabinet subject to certain amendments, in the proposed GIDC (Amendment) Bill, 2017.
The Gas Infrastructure Development Cess (GIDC) Act, 2011 was passed by the Parliament on 25th November, 2011 which received the assent of the President of Pakistan on December 13, 2011 and published in Gazette of Pakistan on 15 December, 2011 as Act No XXI of 2011. Rates of GIDC for various categories of consumers were contained in second schedule which was subsequently revised through Finance Act 2012 and then through Finance Act 2014.
The Act was challenged in High Courts on various grounds which initially issued stay orders for collection of GIDC and finally decided the matter in favour of petitioner declaring the Act as ultra vires to the constitution. The Federal Government filed appeal in Supreme Court which in its judgment of August 22, 2014 held that the GIDC could not have been introduced through a Money Bill under Article 73 of the Constitution and the same was, therefore, not validly levied in accordance with the Constitution.
The sources further stated that GIDC Ordinance 2014 was promulgated on September 24, 2014, as Ordinance No VI of 2014, to validate the imposition of Cess under GIDC Act 2011 as amended through Finance Act 2014. The Ordinance was subsequently promulgated as GIDC Act 2015 on May 22, 2015 as Act IV of 2015. The Act provides for validation of Cess collected under the G1DC, Act, 2011 and GIDC Ordinance, 2014 and all notifications issued pursuant to laws.
The sources further stated that CNG stations were collecting the Cess in CNG sale price in accordance with notification issued by Oil and Gas Regulatory Authority (OGRA) from time to time. A major portion of which was not paid to Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited for its onward payment to Federal Government due to various Court stay/restraining orders.
The detail of total GIDC accrued/levied, collected and outstanding during the period January 1, 2012 till May 22, 2015 is as follows: Total GIDC accrued levied of gas sold SNGPL Rs 42.8 billion, SSGCL Rs 19.8 billion and total Rs 62.6 billion collected during the period SNGPL Rs 13.4 billion, SSGCL Rs 6.3 billion and total Rs 19.7 billion; outstanding amount SNGPL Rs 29.4 billion, SSGCL Rs 13.58 billion and total Rs 42.9 billion.
Ministry of Energy, Petroleum Division in collaboration with Finance Division engaged CNG Sector/Stations through All Pakistan CNG Association (APCNGA) to formulate a mutually acceptable way forward. Both sides have now agreed that CNG Sector will pay half of the Cess payable pertaining to period from January 1, 2012 till May 22, 2015, and no relaxation will be given and full amount will be recovered from the sector.
According to Petroleum Division, Rs 12 billion along with total collection of Rs 19 billion approximately works out to almost half of total GIDC accrued during the period, recommendations of Senate Special Committee have been agreed by Petroleum Division as well as Finance Division. If approved, a bill will be introduced in the Parliament to further amend the GIDC Act 2015 to provide for agreed dispensation to CNG sector. Petroleum Division had also proposed that the mark-up on delayed payment of GIDC [section 3(3) of the GIDC Act. 2016] shall be payable with effect from the date of promulgation of the proposed amendment instead of July 1, 2015.
After detailed discussion in the light of recommendations of CCLC in respect of Gas Infrastructure Development Cess (Amendment) Bill, 2017 the Cabinet approved the proposal contained in the summary and directed that the bill may be introduced in Senate at the earliest, The amount will be recovered in two tranches. First tranche would be recovered in one month after the passage of the bill and second tranche would be recovered within three months after the passing of bill from the Parliament.
Comments
Comments are closed.