Providing relief: Gas infrastructure cess termed void

PESHAWAR: The Peshawar High Court (PHC) on Thursday declared the collection of Gas Infrastructure Development Cess on CNG pumps and industrial units null and void.

The federal government imposed the tax in 2011 to generate revenue for the Iran-Pak gas pipeline project. Industrial units were charged Rs13 per million metric British thermal unit (MMBTU), while Rs141 per MMBTU was collected from CNG pumps. Filing a case against the tax, the petitioners’ council Advocate Shumail Amjid Bhut and Ashtiaq Ahmad told the court the gas pipeline project started this year, while they have been paying taxes since two years.

They also said the rate was increased in 2012 and owners of industries were told to pay Rs100 while CNG pumps were asked to pay Rs263 per MMBTU. The court was informed Islamabad High Court has already declared the tax illegal. The bench then observed such a tax has no legal standing and termed it null and void.

Published in The Express Tribune, June 15^th, 2013.