The Cabinet has approved recovery of Gas Infrastructure Development Cess (GIDC) from CNG sector, according to the Ministry of Petroleum. Senior officials of Ministry of Petroleum and Natural Resources stated on Thursday during a meeting of the Senate Standing Committee on Finance that the federal cabinet meeting on January 03, 2018 approved the GIDC recovery. The committee was further told GIDC Amendment Bill, 2017 will be placed in the Parliament for its approval. The meeting was told that Rs 12 billion will be recovered from CNG sector in two installments after the approval of the Bill from the Parliament.
According to Petroleum Ministry, "The summary with respect to Amendment in GIDC Act, 2015 regarding settlement of arrears of GIDC from CNG sector was submitted to the federal cabinet on 09.10.2017 which was referred to Cabinet Committee on Disposal of Legislative Cases (CCLC) for consideration. The CCLC in its meeting herd on 02.11.2017 considered the summary. Based on the recommendations of CCLC, a summary was submitted to the federal cabinet for ratification of the decisions of the CCLC."
An official claimed that CNG stations have been collecting Cess on CNG sale price in accordance with the notification issued by Oil and Gas Regulatory Authority (OGRA) but a significant portion of the amount was not deposited to the Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for its onward payment to the federal government due to various courts' stay/restraining orders. The GIDC was imposed for infrastructure development of Iran-Pakistan (IP) Gas Pipeline Project, Turkmenistan-Afghanistan-Pakistan-India (TAPI) Pipeline Project, LNG or other ancillary project.
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