ISLAMABAD: The Senate Special Committee on Gas Infrastructure Development Cess (GIDC) criticised the government on Friday for failing to rectify anomalies in the cess and noted that the textile sector was getting undue favours.
The meeting, chaired by Senator Ilyas Bilour, noted that the captive power plants (CPPs) of textile units were enjoying exemption under the GIDC Act of 2015, and recommended they should be treated on a par with the industrial sector.
The committee decided to consult all the stakeholders in resolving the issue of outstanding amount of Rs100 billion against various consumers on account of GIDC.
Briefing the participants, Federal Minister for Petroleum Shahid Khaqan Abbasi said that the government has not waved off the outstanding amount of any segment of the economy.
The committee decided to invite all stakeholders in the next meeting for consultation so that a reasonable solution can be reached.
Mr Abbasi said the Oil and Gas Regulatory Authority included GIDC in the price of compressed natural gas (CNG) and all CNG outlets have collected it from end-consumers; therefore, the sector must have to pay the amount.
The committee chairman complained that the government was not providing relief in gas tariff to the industrial sector of Khyber Pakhtunkhwa, adding that ignoring the province was injustice.
The representatives of the textile sector who were invited to the committee blamed the ministry of finance for creating a mess by showing GIDC as revenue in the budget documents, saying that the government has only spent Rs280 million from GIDC on gas infrastructure development projects out of over Rs200 billion collected under the head.
Meanwhile, the petroleum minister after consulting the officials said that the GIDC collection of over Rs100 billion was still outstanding against various consumers, including CNG outlets, fertiliser and cement plants, general industry, etc.
The committee has recommended that GIDC issue should be treated sector-wise as all sectors are ready to pay but not retrospectively. It has further recommended that the CNG sector should be given a sympathetic consideration and the exemption should be provided in pursuance of court orders.
