Captive power levy: PHC suspends recovery from gas-based industries

PESHAWAR: The Peshawar High Court (PHC) on Wednesday suspended the collection of the recently imposed captive power levy on industries generating electricity from gas.

A division bench comprising Justice Syed Arshad Ali and Justice Qazi Jawad heard initial arguments in a petition filed by industrials and subsequently ordered a stay on the levy’s collection.

The counsel for the petitioners informed the court that the levy had been imposed under the Off-the-Grid (Captive Power Plants) Levy Ordinance, 2025, which was promulgated in January this year. Under this ordinance, a levy of Rs791 per MMBTU was imposed on all captive power producers, he said.

Representing cement and textile manufacturers, he argued that the levy had been challenged in the Peshawar High Court on the grounds that it was introduced without due consultation with the affected industries.

He contended that the government did not take into account the production capacity and other relevant factors of these industries before setting the levy rate. The court was informed that the levy was enforced hastily without the necessary rules and regulatory framework in place.