- Minister justifies cess citing country’s Rs 1,000b need for maintaining and improving gas system
- Says bill’s objective is that only gas users bear cost amidst 400 cubic feet gas shortage
Amidst protest and walkout by parliamentarians from Muttahida Qaumi Movement (MQM), Pakistan Tehreek-e-Insaf (PTI), Awami National Party (ANP) and Balochistan National Party Awami (BNPA), the Senate Wednesday passed “The Gas Infrastructure Development Cess (GIDC) Bill, 2015” with majority, providing for levy and collection of the gas infrastructure development cess.
Speaking on the bill, Minister for Petroleum and Natural Resources Shahid Khaqan Abbassi said that the country needed Rs 1,000 billion for maintaining and improving the gas system in the country. He said only Rs 2 billion were required for the construction of gas pipelines. He said the cess will contribute Rs 120 billion annually into the national exchequer. He said the revenue collected from GIDC will be used for the infrastructure development in the country.
The minister said the country needed 800 billion cubic feet gas annually while only 400 billion cubic feet gas is available that has created the issues like gas shortage and load shedding. He said the objective of the bill is that only the users bear the cost instead of the people of the whole country.
The opposition members opposed the bill saying that provinces should be taken into confidence before levying the cess. They were of the view that the bill will have negative effect on smaller provinces and the industrialists. They said that the matter should be referred to the concerned committee of the House for further consideration.”
Responding to members’ queries, the minister clarified that the cess under the bill will not be any additional tax rather it has been collected for the last four years. He said by now, Rs 112 billion have been collected under this cess. He said that the usage report of the cess will be presented before the Parliament every year.
The minister said the cess was not province-specific and will benefit the entire country. He said the projects started with the help of this cess will help overcome gas shortage in the country. He proposed that anomalies committee of the House be constituted for addressing the anomalies arising out the cess bill.
Abbasi said that government has started a programme under which gas connections are being provided to all district headquarters of Balochistan.