ISLAMABAD: Advisor to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh has welcomed the decision of the Supreme Court settling the long-standing Gas Infrastructure Development Cess (GIDC) case.
In a tweet, the advisor also appreciated the good work of the government team, especially the Attorney General and the Finance and Petroleum ministries. He said this will enabling the government to recover GIDC stuck-up for last many years.
“Welcoming decision of the Supreme Court settling long-standing GIDC case, and enabling the government to recover GIDC stuck-up for last many years. I want to appreciate the good work of the government team, especially office of the Attorney General, and the Finance & Petroleum ministries,” he tweeted.
The Supreme Court of Pakistan on Thursday issued its much-anticipated verdict in the GIDC case and ordered the companies to pay Rs417 billion while rejecting their appeals.
Justice Mushir Alam read the reserved decision made by a three-member bench on February 20, 2020. The panel rejected the petitions in a 2-1 verdict, ordering the companies to pay the levy.
The bench has reserved the verdict after hearing 107 petitions/appeals of various textile mills, cotton mills, sugar mills, ceramics companies, chemicals, CNG filing stations, match factories, cement companies and aluminum industries regarding GIDC levy for two weeks had reserved the judgment.
GIDC was imposed by the government back in December 2011 to raise funds for the development of gas infrastructure in the country. According to the GIDC Act, the collected amount shall be utilised by the federal government for Iran-Pakistan (IP) gas pipeline, LNG, and other ancillary projects.
The largest cash outflow would be witnessed from fertilizer companies to the tune of Rs110bn. Fauji Fertilizer will be required to pay Rs63bn (43pc of market cap), Fauji Fertilizer Bin Qasim Rs22bn (109pc of market cap), Engro Fertilizer – Rs19bn (21pc of market cap) and Fatima Fertilizer – Rs6bn (10pc of market cap).
It is pertinent to former that the former government had imposed the tax of Rs 417 billion while the incumbent government had waived Rs 220 billion but then withdrew the waiver ordinance.
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