Textile tycoons get Rs13 bn relief

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ISLAMABAD: The government has reduced the gas infrastructure development cess (GIDC) by 50 percent per million British thermal units (MMBTU) for the industrial sector, a senior official said on Friday. A notification to the effect has already been issued.

 

 

 

With the issuance of the notification, the gas infrastructure development cess to the industrial sector becomes the lowest compared to other sectors. “At present, CNG consumers are paying the highest GIDC of Rs300 per MMBTU whereas industrial consumers will now pay Rs50 per MMBTU,” the official at the ministry of petroleum and natural resources said. “This decision will deprive the national exchequer of revenues worth Rs13 billion per annum.”

 

 

 

Earlier, gas infrastructure development cess of Rs100 was imposed on one MMBTU gas supply to the industrial sector with effect from July 1, 2012. The objective of imposing the surcharge was to fund the Iran-Pakistan (IP) gas pipeline, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline and to import liquefied natural gas (LNG).

 

 

 

The official alleges that the industrial sector, which is involved in massive tax evasion as well as theft of gas and electricity, has managed to get relief worth Rs13 billion because of the influence of the textile lobby within the government circles.

 

 

 

“President Asif Zardari directed Dr Asim Hussain (adviser to the prime minister on petroleum and natural resources) to reduce the surcharge on the demand of the All Pakistan Textile Mills Association,” accused the official.

 

 

 

However, voices within the industrial lobbies insist that the ongoing power crisis has hit them the hardest and has caused great suffering in terms of not just productivity losses but also unemployment.

 

Courtesy: The News


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