PD unable to collect Rs417bn of GIDC unless cabinet approves new rules

ISLAMABAD: The Petroleum Division is unable to collect Rs417 billion of Gas Infrastructure Development Cess (GIDC) unless the cabinet approves fresh utilisation rules under the GIDC Act.

A parliamentary panel on Wednesday was apprised that various consumers obtained stay orders from high courts against the verdict given by the Supreme Court of Pakistan in case of GIDC collection on August 13, 2020.

In a landmark judgement, the apex court had rejected the appeals of several companies and directed them to pay Rs417 billion GIDC to the government

A sub-committee of the Public Accounts Committee (PAC) held under convener Naveed Qamar which examined the Audit Report Ministry of Energy (Petroleum Division) Receipts and Public Sector Enterprises 2016-17.

The committee was informed that the companies were granted by the Lahore High Court, Multan High Court and Sindh High Court, stay against any corrosive action (disconnection of gas) against them in case of non-realisation of late payment surcharge (LPS) on the GDIC amount.

Naveed asked how the high courts grant stay or directive against the verdict of the Supreme Court of Pakistan.

He said this means that the defaulters could also obtain any judgments from any session court against the verdict of the apex court in the GIDC.

The committee was further informed that in review petition on the GIDC, the period to lay down gas pipeline projects was extended from six month to one year.

The payment of GIDC amount was spread over 48 installments instead of 24 installments.

A performance report on utilisation of the cess on various projects will also be laid in the parliament for discussion, the committee was informed.

Ascertain of real outstanding dues of the GIDC from consumers was a real challenge as some consumers claimed that they never collected the GIDC, and in their defence they showed their accounts. Managing Director Sui Northern Gas Pipeline Limited (SNGPL) Aamir Tufail quoted few examples.

The GIDC was imposed by the government back in 2015 to raise funds for development of gas infrastructure in the country.

The GIDC Act provides a legal framework which allows the government to levy and collect cess from gas consumers other than domestic sector consumers.

An official of the Petroleum Division said that the fresh rules of utilization of GIDC was vetted by the Law Division, and judgement of Supreme Court of Pakistan in GIDC case need certain interpretation as some issues in the collection were not touched.

Copyright Business Recorder, 2020