The Islamabad High Court (IHC) on Thursday declared the collection of surcharge on gas infrastructure development from CNG and domestic users “unlawful”.
A one-member IHC bench comprising Justice Shaukat Aziz Siddiqui heard a petition filed by commercial gas users and CNG station owners.
The petitioners pleaded before the court that the gas infrastructure development surcharge (GIDS) was being collected on the pretext of Pakistan-Iran gas pipeline project but the project had not yet begun, and therefore this collection was not justified.
In its short order, Justice Siddiqui barred the government from receiving the Gas Infrastructure Development Tax meant for collecting funds for Pakistan-Iran gas pipeline, and directed the government to stop the collection of this surcharge. The government had been receiving surcharge of Rs 10 to 100 under Infrastructure Act 2011.
The court ruled that some clauses of the act were prima facie unconstitutional; therefore surcharge could not be received.
Gayyas Paracha, chairman of the CNG Station Owners’ Association, termed the verdict a victory for the people. He said that billions of rupees collected on the pretext of GIDS, should be returned to the consumers.
He said that with the implementation of the court’s verdict, CNG prices in Region-I would come down by Rs 4-5 per kg, while in Region-II, prices would ease by Rs 2-3 per kg.
