ISLAMABAD: Minister of State for Finance and Railways, Bilal Azhar Kayani, has directed the Petroleum Division and Ogra to resolve the issues related to grid transition levy and retrospective actualization of RLNG charges for the textile industry, sources told Business Recorder.
The State Minister issued these directives at a meeting held with a delegation of the business community under the umbrella of the Special Investment Facilitation Council (SIFC).
Business community’s representatives were of the view that the grid transition levy has disproportionately penalized high–efficiency Combined Heat and Power (CHP) plants, which achieve 60-80 percent efficiency by utilizing waste heat for the industrial process.
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It was suggested that CHP plants under the industrial gas tariff category be reclassified, subject to a 60 percent efficiency benchmark and annual third-party audits. It was also suggested that RLNG be supplied at its actual cost without subsidies from the government.
The business community delegation comprising the APTMA and KCCI further complained that sales tax is being charged separately on the captive levy.
On the issue of retrospective charges on account of RLNG, the meeting decided that Ogra and the Petroleum Division are tasked to resolve the issue facing the industries. An update will be presented by the Petroleum Division and Ogra to consider actualization of the RLNG charges on a quarterly basis.
The calculations of the grid transition levy would be reviewed by the Petroleum Division in the light of reservations raised by APTMA regarding reliance on peak-hour tariff and pricing constraints under the IMF programme.
The Power Division will clarify the issue of sales tax on captive levy and provide clarification on the matter to the SIFC/Office of Minister of State for Finance & Railways by Friday (Nov 14).
The business community has claimed that retrospective charges on account of the RLNG (Rs 75 billion) are being charged in electricity bills to industries. The issue is creating financial challenges for industries as financial books have already been closed/settled for the same period.
It further claimed that although actualization of RLNG charges by OGRA has been challenged in court, however, bills have been issued to industries. The FPCCI/GCCI requested that until the final decision on the matter by the court, relaxation in deferring the charges should be extended to the industries.
The FPCCI raised concerns over the deployment of the FBR officials on selected factories under Section 40B of the Sales Tax Act, terming it discriminatory against certain businesses.
Minister of State for Finance directed that in the next meeting of the Committee, the complaints received under Section 40 B from Multan CCI must be addressed.
On the issue of waiver on the electronics import form the trade with Iran expires in 45 days and needs to be renewed. The QCCI requested that its validity needs be enhanced to one year.
Copyright Business Recorder, 2025
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