Prime Minister Imran Khan on Wednesday (Sep 4) decided to withdraw the Ordinance regarding Gas Infrastructure Development Cess (GIDC) and directed the Attorney General to move an application for an urgent hearing in the Supreme Court.
The statement issued by the Prime Minister’s Office on Wednesday stated that “The total amount stuck in the GIDC litigation from January 2012 till December 2018 is about Rs417 billion.”
“In the first of litigation, the Supreme Court was pleased to annul the GIDC statue. The federal government’s review petition was also dismissed by the Supreme Court. Thereafter fresh legislations were brought about, which are presently under challenge before the Provincial High Courts and a set of appeals is also pending in the Supreme Court,” PM Office statement said.
President Dr. Arif Alvi recently promulgated the Gas Infrastructure Development Cess (Amendment) Ordinance 2019 to waive half of the outstanding liabilities of fertilizer, textile, power generation and compressed natural gas (CNG) sectors.
Through the presidential ordinance, the government also reduced GIDC rates by up to 75%, which would push down prices of gas and fertiliser for the end-consumers. However, the ordinance triggered a wide range of criticism, forcing the government to withdraw it.
The government also waived the late payment surcharge, which was supposed to be paid at the rate of 4% plus three-month Karachi Interbank Offered Rate (Kibor). Three-month Kibor currently stands at 13.7%, which means the government has written off 17.4% mark-up, which brings the total to over Rs300 billion.
It is pertinent to mention that the total money of Rs 417 billion stuck from January 2012 to December 2018 as Supreme Court has already ordered the nullify the law.
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27 September, 2019