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Gas infrastructure cess: Ministry refuses to make projection for next year
Source: Tribune | 02-05-2013

The Ministry of Petroleum and Natural Resources is not making any projections for collection of gas infrastructure development cess from consumers in the next fiscal year as the Islamabad High Court has placed restrictions on its imposition.


The move comes after the Ministry of Finance approached the petroleum ministry, asking it to give estimates relating to collection of cess, which is aimed at financing the construction of Iran-Pakistan gas pipeline project, say sources.


For the current fiscal year ending June 30, the government had expected to bag Rs30 billion in budget estimates. The cess was imposed in 2011-12 with recovery projection of Rs8 billion for the year.


“The government has collected Rs40 billion since the cess was imposed on gas consumers to finance the Iranian gas import project,” an official told The Express Tribune.


However, the finance ministry has not been able to deposit the money in a special account, called assignment account, opened in a domestic bank for financing the pipeline because it faces shortage of funds after heavy spending by the previous government on development projects and payment of uncontrollable power subsidy. 


 

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