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No GIDC collected as court suspends collection

The government couldn''''t collect any amount on account of Gas Infrastructure Development Cess (GIDC) in the current fiscal year because the collection has been suspended by court. Sources told Business Recorder on Saturday that the GIDC collection remains suspended since July and the matter is in litigation, however, the GIDC on account of gas sale is being assessed and can be recovered from the concerned gas companies in any month of the current fiscal year provided the case is decided in favour of the government.

Sources were optimistic that there would be no shortfall in non-tax revenue collection for the current fiscal year projected at Rs 821 billion. However, fiscal operation for the first quarter showed Rs 3.048 billion collection through GIDC. When asked, sources said that Rs 3 billion was for the month of June 2013 and GIDC collection was suspended by the court from July 2013. They said that petroleum levy collection is almost on target and the government has collected over Rs 45 billion in the first five months of the current fiscal year against the projected annual target of Rs 120 billion.

The total GIDC collection is estimated at Rs 38 billion for the current fiscal year and is part of federal government fund. An official on condition of anonymity said the collection from GIDC stood at Rs 50 billion with Rs 35 billion in 2012-13 and Rs 8 billion in 2011-12. He said that collection can be utilised by the government at will for any purpose but is difficult to ascertain whether it was utilised to clear the circular debt.

The GIDC was imposed on all the gas consumers except domestic consumers in January 2011 with the purpose to develop infrastructure gas pipeline projects - Iran-Pakistan (IP), Turkmenistan-Afghanistan-Pakistan-India (TAPI) and Liquefied Natural Gas (LNG).

The federal government is collecting cess under the Gas Infrastructure Development Cess Act with the objective of utilising it for infrastructure development of IP, TAPI, LNG and other projects, or for price equalisation of other imported alternative fuels, including LPG. The maximum cess was imposed on fertiliser sector at the rate of Rs 197 per MMBTU, followed by CNG of Rs 141 for Khyber Pakhtunkhwa, Balochistan and Potohar Region, and Rs 79 for Sindh and rest of Punjab.

Copyright Business Recorder, 2013


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