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The government seems to be looking for a blanket approval from the Senate Standing Committee on Finance of petroleum levy and gas infrastructure development Cess rates, said Chairman Senate Standing Committee on Finance Ahmed Ali. He was talking to media after postponement of the committee meeting, which was convened to consider Petroleum Levy Amendment Bill 2011 and Gas Infrastructure Development Cess Bill 2011.
The meeting was delayed because majority of the committee members was not ready to treat the bills in the ambit of money bill. Ahmed Ali expressed surprise that how the government could commit such a mistake after clear verdicts by the Supreme Court identifying what can and what can not form the part of a money bill. "The government wants a blanket approval from the committee so that it could impose desirable rates to collect Cess and development levy as no rates have been specified in the bills," he said cautioning the government to behave sensibly.
Minister for Petroleum and Natural Resources Dr Asim Hussain and Secretary Finance looked disappointed and upset after the committee decided to postpone the consideration of the bills till Thursday to allow members to study bills before drawing a final conclusion. However, Dr Asim was quoted as saying that bills have been deliberately delayed and their passage from the committee in the ongoing session of the Senate was of grave importance for the government.
Senator Ahmed Ali also referred to Supreme Court's verdicts with respect to money bill and stated that the committee members would not commit anything in violation of the precedent set by the apex court.
He said that the Supreme Court had already rejected the extension of National Bank of Pakistan President, but the government was committing the same mistake again. The Chairman Standing Committee on Finance also pointed out that the government was violating the Constitution by imposing Gas Infrastructure Development Cess because it was the prerogative of the provinces and not the federal government after the approval of 18th Constitutional Amendment and amendment in the sixth schedule.
Ahmed Ali was of the view that the petroleum levy being imposed on the companies would be passed on to the consumers. He said that no political party could afford to support imposition of tax on gas especially when general elections are approaching. He said the government must behave responsibly and should not pressurise the committee to pass the bills in haste. The committee is allowed 14 working days time to decide about the fate of the bills after receiving it from the Senate.

Copyright Business Recorder, 2011

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