Ministry Of Finance agrees to abolish GIDC (Gas Infrastructure Development Cess)


Islamabad: Ministry Of Finance has agreed to abolish Gas Infrastructure Development Cess (GIDC) imposed on the gas consumers following refusal of different sectors to pay.

At present, CNG (compressed natural gas), textile and fertilizer industries have obtained stay orders and were not paying bills on account of GIDC (Gas Infrastructure Development Cess)  to the government meant to spend on building gas pipeline projects.

During its tenure, Pakistan Peoples’ Party (PPP) had imposed GIDC(Gas Infrastructure Development Cess) on gas consumers including fertilizer, captive and CNG to raise funds to execute gas pipeline projects like IP, TAPI and LNG(compressed natural gas). However, this tax had become controversial as PML-N government did not spend it on building gas pipeline projects. However, PML-N government made it part of the budget and different sectors obtained stay orders from the court.

CNG, fertilizer and textile barons have collected Rs 400 billion from the consumers but they were not paying the government after obtaining stay orders from courts. The PML-N government had waived off 50 per cent money against CNG sector on account of GIDC(Gas Infrastructure Development Cess).

During meeting held in Finance Ministry, textile and fertilizer industries had also demanded to treat like CNG(compressed natural gas) sector by waiving off 50 per cent outstanding. However, the final decision had not been taken so far. An official of petroleum division said that government would have to treat textile and fertilizer industries like CNG(compressed natural gas) sector. He said that discussion was going on and final decision would be taken soon.

Via Newztodays