Government to collect budgeted Rs 145 billion for fiscal year 2015: President signs GIDC Ordinance President Mamnoon Hussain, on the advice of the Prime Minister, has signed the Gas Infrastructure Development Cess Ordinance, 2014 for promulgation to collect the budgeted Rs 145 billion for current fiscal year. On 22 August 2014 a three-judge bench of Chief Justice Nasirul Mulk declared GIDC as a fee and not a tax. The cess could not have been introduced through a money bill under Article 73 of the Constitution - the same was, therefore, not validly levied in accordance with the Constitution, the verdict concluded. The apex court termed GIDC illegal and reportedly ordered the federal government to refund the amount collected on account of the cess to consumers fully or through adjustment in their gas bills. The ordinance was also promulgated to provide a legal cover to the recovery of the amount, which has already been collected by federal government through gas development infrastructure cess from consumers. It has been reported that the government intends to collect Rs 145 billion through GIDC in Budget 2014-15. In the fiscal 2012-13, the government collected Rs 121 billion from this surcharge. Sources said the IMF had expressed concerns over the governments ability to achieve revenue collection target subsequent to suspension of GIDC collection by the apex court. Failure to collect GIDC was one of the factors that led to inconclusive mandatory 4th Review of the Pakistan economy under $6.64 billion Extended Fund Facility (EFF) by the IMF staff level mission. The IMF during a press briefing dated August 28, 2014 uploaded on its website said, the mission has had fourth review discussions under the EFF that will continue via videoconference from Washington and we would expect to update you at the conclusion of these discussions.
Posted on: Fri, 26 Sep 2014 06:40:03 +0000