The government’s attempt to smoothly sail through the Senate Standing Committee on Finance with its two money bills for the imposition of petroleum levy and gas cess were hindered as the committee decided to hold a detailed review on Thursday (tomorrow).
Chairman Ahmed Ali said a majority of the members were not ready to consider the bills as the levy and cess did not come under the money bill.
Due to the absence of some members, the committee decided to postpone the meeting until Thursday. The committee noted with concern that the government was seeking a blanket approval from it to impose rates of its own choice for imposition of petroleum development levy and gas cess as the rate of cess and levy were not specified in the bills.
Later talking to reporters, Senator Ahmed Ali said the government was violating the constitution by imposing gas infrastructure development cess because after the approval of the 18th Amendment and changes in Schedule 6, cess tax was a provincial subject. He said no political party would support the government with respect to impose tax on gas especially when the general elections were approaching.
Secretary Finance Waqar Masood Khan told reporters government and the IMF would be holding review of the economic performance of the country under Article-IV consultation in Dubai from November 9 to 17.
An official source said the government wanted the passage of petroleum levy and gas cess bills before leaving of the economic team for Dubai for talks with the IMF. However, he said, the government had not determined the rate on which the levy and cess would be imposed yet.