ISLAMABAD: The government has made it clear to All Pakistan CNG Association (APCNGA) that it will not waive Rs42 billion outstanding Gas Infrastructure Development Cess (GIDC), which the association has to deposit in government kitty, however possibility of adjustments in it exists.
A Special Committee of the Senate on Gas Infrastructure Development Cess (GIDC) met here Friday with Senator Ilyas Bilour in the chair. The finance ministry ruled out waving the entire outstanding amount however said that the adjustment could be possible.
Ministry of Finance Secretary Waqar Masood said, “The ministry was ready to accept justified demands of the APCNGA, adding that the entire outstanding amount of the GIDC could not be waived, however adjustments are possible.”
Masood assured the committee that the finance ministry along with APCNGA and petroleum ministry would look into the entire matter and bring consensus recommendations to the committee members within short possible period.
It is worth mentioning that there is more than Rs100 billion outstanding amount against various gas consumers including CNG outlets, fertiliser, cement plants, general industry and others on account of GIDC. The government has not waived GIDC outstanding amount of any segment of the economy.
CNG sector owes Rs42 billion in term of GIDC, Ministry of Petroleum Director General (Gas) told media outside the meeting of Senate Standing Committee on Petroleum and added that in a number of meetings with APCNGA the ministry had offered them to pay Rs28 billion but the association said that this amount was not justified and they could pay Rs16 billion,
The Senate Special Committee that monitors the implementation of the GIDC Bill-2015 directed all the stakeholders to come with a viable plan so that the matter could be settled as early as possible.
Ilyas Ahmed Bilour, while expressing disappointment over the absence of petroleum minister and secretary petroleum said that neither did the Ministry of Finance consider recommendations made by the committee nor did petroleum ministry come with a viable solution to the matter.
The committee had recommended that the bill should be treated sector wise and noted that all the sectors were ready to pay outstanding amount of GIDC but not retrospectively. According to senior leader of APCNGA, Ghiyas Abdullah Paracha, the CNG body on the directions of the committee hired the services of the charted accountant to calculate exact amount of the outstanding GIDC but the Ministry of Finance was not agreeing to their calculations.
Additional Secretary of the Ministry of Finance Furqan Bahadur Khan, while briefing the committee, said that the GIDC Act 2015 as passed by Parliament provided that the cess received by the CNG station owners from gas consumers under the GIDC Act 2011 and GIDC Ordinance 2014 was still valid under the provisions of the GIDC Act 2015. “Therefore, the question of not paying the cess retrospectively does not arise, however the ministry was ready to discuss the issue with APCNGA and ready to accept the justified demands of the CNG body,” Khan added.
Convener Ilyas Ahmed Bilour was of the view that commitments made on floor of the House by ministers, with regard to incorporating suggestions of the committee in the bill, must be fulfilled. Among others, the meeting was attended by Lt Gen (R) Abdul Qayyum, Professor Sajid Mir, Mohsin Aziz, Hilalur Rehman, Saeedul Hassan Mandokhel and Muhammad Mohsin Khan Leghari.
