ISLAMABAD: National Assembly and Senate on Wednesday passed the Gas Infrastructure Development Cess (GIDC) bill 2015, following is the text of the bill passed by the both Houses.
WHEREAS it is expedient to provide for the validation, imposition, levy and collection of infrastructure development cess on natural gas and for matters connected therewith;
It is hereby enacted as follow; 1. Short title, extent and commencement.- (1) This Act may be called the Gas Infrastructure Development Cess Act, 2015.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once. 2. Definitions.- In this Act, unless there is anything repugnant in the subject or context,-
(a) "cess" means the gas infrastructure development cess levied and
chargeable from gas consumers, other than the domestic sector
consumer, of the company over and above the sale price and payable
under section 3;
(b) "company" means a company specified in the First Schedule;
(c) "natural gas" means hydrocarbons or mixture of hydrocarbons and
other gases which at sixty degrees Fahrenheit and atmospheric
pressure are in the gaseous sate (including gas from gas wells, gas produced with crude oil and residue gas and products resulting from the processing of gas) consisting primarily of methane, together with any other substance produced with such hydrocarbons;
(d) "prescribed" means prescribed by the rules;
(e) "rules" means rules made under this Act;
(f) "sale price" means the price notified under section 8 of the
Oil and gas regulatory Authority Ordinance, 2002 (XVII of 2002) at which a licensee for natural gas is authorized under said Ordinance and license to sell natural gas to any category of retail consumer for natural gas as well as the price charged
by gas company under third party direct sale arrangement where price is not notified by Oil and Gas regulatory Authority; and
(g) "schedule" means a Schedule to this Act.
3. Levy of cess.- (1) The cess shall be levied and charged by the Federal Government from gas consumers, other than the domestic sector consumers, or the company at the rates as provided in the Second schedule to this Act. The gas company shall be responsible for billing of cess to gas consumers, its collection from gas consumers and its onward payment to the Federal Government may prescribe:
(2) The company shall collect and pay cess at the rates specified
in the Second Schedule and in such manner as the Federal Government may prescribe: Provided that the Federal Government may decide to
levy any rate of cess on any category of gas consumers subject to maximum rate provided in the Second Schedule.
(3) A mark up at the rate of four percent above three months KIBOR prescribed by the Federal Government shall be payable by the gas consumer or the company on any amount due under sub-section (1), if the said amount is not paid by the said gas consumer or by the said company respectively within the prescribed time, mark up payable by the gas company or any mark up payable by gas consumer to the gas company shall be deposited in such manner as the Federal Government may prescribe; Provided that the said mark be payable with effect from the 1st July, 2-15.
4. Utilization of cess.- (1) The cess shall be utilized by the Federal Government for or in connection with infrastructure development of Iran-Pakistan Pipeline Project, Turkenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project,
LNG or other ancillary projects.
(2) An annual report in respect of the utilization of the cess shall be laid before the both Houses of Majlis-e-Shoora (Parliament) after three at the end of each fiscal year.
5. Allowance to be made for cess for purposes of Income tax.- The cess paid by a company shall be an expenditure for which allowance
is to be made under the Income Tax Ordinance, 2001 (XLIX of 2001) in computing the profits or gains of that company.
6. Power to make rules.- (1) The Federal Government may, by notification in the official Gazette, make rules for carrying out
the purposes of this Act.
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