Govt explores options to recover Rs447bn GIDC

ISLAMABAD: The government has explored all available options to find out a solution to the recovery of the outstanding amount of Gas Infrastructure Development Cess (GIDC) to the tune of Rs447 billion.

Federal Minister for Finance and Revenue Senator Muhammad Ishaq Dar chaired a meeting on Gas Infrastructure Development Cess (GIDC) at Finance Division on Monday.

The meeting considered four options including holding of forensic audit of the industrial consumers claiming to have not charged GIDC to their consumers or passed on in their product pricing and have not accounted the same in the audited accounts. The reconciled and recoverable amounts based on audit may be allowed to be recovered in installments.

Under option-II, option for out-of-court settlement with consumers who are willing to net off their GoP receivables (GST, Income Tax, DLTL claims, Subsidy claims) against GIDC payables with balance recovery in installments.

Under third option, the proposed settlement at (i) and (ii) may be made through an Act of Parliament i.e., amendment to GIDC Act 2015 as was the case for CNG sector settlement for the period Jan 2012 to May 2015.

Under fourth option, it was deliberated that in order to effectively litigate the cases for recovery of GIDC against chronic defaulters, a team of external legal counsels may be hired with fixed fee and performance fee linked with proportionate recovery of GIDC arrears.

According to Finance Ministry’s statement, Federal Minister for Finance and Revenue Senator Muhammad Ishaq Dar chaired a meeting on Gas Infrastructure Development Cess (GIDC) at Finance Division.

Minister of State for Finance and Revenue Dr Ayesha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, SAPM on Finance Tariq Bajwa, Secretary Finance, Deputy Attorney General, MD OGDCL, representatives of SNGPL, SSGCL, PPL and senior officers from Finance and Petroleum Divisions attended the meeting.

The meeting was apprised of amount of outstanding Cess recoveries from various entities and discussed GIDC Acts and Supreme Court’s order in this regard. It was informed that Rs447 billion is still outstanding and needed to be recovered and there are 3194 petitions in various court of laws.

Examining the court’s decisions and stay order, the Finance Minister expressed serious concerns over the non-recoveries of Cess dues and expressed resolve of the government to recover each penny from the defaulters on account of Gas Infrastructure Development Cess (GIDC). He further directed the authorities to share updated break-up of arrears of sector wise GIDC in the next meeting in order to frame up legal and administrative strategy for fast track recovery of the outstanding GIDC outstanding dues.