Senate (Anomaly) Committee decides to not charge of GIDC past retrospective to industries and captive power units

July 15, 2015 Off By Web Desk

Peshawar: The Senate (Anomaly) Committee on Gas Infrastructure Development Cess, in its meeting, decided to not charge of GIDC the past retrospective to industries and captive power units.

The committee meeting was chaired by PML-N Senator Iqbal Zafar Jhagra. Besides, Minister for Petroleum and National Resources, Shahid Khaqan Abbasi, and high officials of Federal Ministry of Petroleum, and Finance, the Senators from smaller provinces, include Senator Mohsin Aziz, Senator Ilyas Ahmad Bilour, Saleem Mandiwala also attended the meeting, according to press release issued here on Thursday.

In the meeting, Pakistan Tehreek-i-Insaf leader and Vice Chairman of Khyber Pakhtunkhwa Board of Investment and Trade (KPBoIT) Senator Mohsin Aziz vehemently discussed the retrospective impacts on industries and captive power units, by imposition of Gas Infrastructure Development Cess, besides rights of smaller provinces, and different judgments, taken by Peshawar High Court, Islamabad High Court and Supreme Court, regarding the levy of GIDC and others.

The meeting, Mr Aziz said was also proposed to bring down GIDC at an optimal level. He said the committee was strongly opposed the levy of GIDC, which is against the interest of the business community. He said the move would put negative impact on the country’s economy. Also to reduction of rates of GIDC for industries/captive power units, was discussed as it cannot bear huge cost keeping in view the reciprocal competently, the meeting said.

The committee also expressed concern over imposition of levy through a promulgation of presidential ordinance. The meeting also asked it should be determined that where the accumulative money of levy would have spent, before its formal imposition.

It was discussed the verdicts of Peshawar and Sindh High Courts along with apex court against the imposition of GIDC. It was also raised the question that how much rate of GIDC will increase in future, which is currently rate of GIDC on Industrial sector Rs.100 per Million British thermal Unit (MMBTU) and on Captive Power Plants to Rs.200 per MMBTU.

The business community appreciated the decision for not charging past retrospective Gas Development Infrastructure Cess (GIDC) from Captive Power Plants, The rate of CNG and other retrospective of GIDC will be discussed in next meeting of the committee.