CNG sector should deposit GIDC into exchequer: Khaqan

Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has said that the government has no power to waive any tax and the CNG sector will have to pay the amount which it has collected from consumers on account of Gas Infrastructure Development Cess (GIDC). "There is no doubt that the CNG sector collected GIDC from the consumers, but did not deposit the amount in the national exchequer," said the minister while briefing the Senate''s Special Committee on GIDC Bill, 2015.
The meeting held with Ilyas Bilour in the chair on Tuesday discussed the implementation on the committee''s report. The CNG stations collected the GIDC, but did not deposit the amount to the government and around Rs 40 billion, including the LPS (late payment surcharge), are pending against the CNG sector, the minister said.
The government was in negotiation with CNG sector to settle outstanding amount on account of GIDC, "but, it cannot waive off any tax on its own as any settlement regarding recovery of outstanding GIDC, can only be made in the Parliament in a constitutional manner," the minister added.
The committee observed that the sectors that collected GIDC should pay it to the government, though it did not reach any consensus on the issue relating to the CNG sector. The committee''s convener said that it would be better to approve old committee report. "We are not here to take the onus and committee should present old report in the House."
Abbasi stressed that the committee should take decision and give its recommendations on the GIDC issue. The CNG sector is getting 300MMCFD gas and it is an important sector, said the minister, adding that all litigation after the passage of the bill should be withdrawn as it has serious impacts on the sector. However, the committee deferred the decision on the issue and decided to meet again on February 9 to finalise the matter.
Some of the committee members observed that two fertilisers companies were collecting GIDC, but not depositing the amount in the national exchequer. Senator Mohisn Khan Leghari said that the amount allocated for the subsidy has almost been spent and more cash would be required for the Rabi crops. It would be better to slash the GIDC on fertilizer sector and give relief to farmers in fertilizer prices. However, the minister said that it is the subject of Finance Ministry and he cannot say anything in this regard.