Islamabad:
The Superior Court of Islamabad (IHC) has allowed the Government to collect the gas tax from the electrical plants, but prevented it from using the money until the ad hoc legislation receives the approval of the Parliament, in an order that addresses the IMF’s concerns for now.
In its order, the Court probate its three -week stay granted against the recovery of RS791 by MMBU gas tax of the owners of the factories that use gas to produce internal electricity.
The Tax has been imposed on IMF instructions to force gas change industries to the national electricity network.
The government wanted to use money to reduce electricity prices in approximately the RS1 unit in line with an understanding with the IMF.
The Court published its reserved order after Agp Mansoor Usman Awan through a request requested stay of the stay.
“When considering the above, the diverse civil application is allowed, and the provisional order is remembered subject to the following express conditions,” says the judge’s order.
The court instructed that “all the tax amounts collected from the petitioners under the contested ordinance will be deposited and will retain in the federal consolidated fund during the validity of the ordinance, that is, 120 days after their promulgation.”
The Court also ruled that the money will not be assigned, transferred or spent for any purpose that is not provided under the contested ordinance.
The Order declared that “in the event that the contested ordinance does not receive parliamentary approval, all sums collected under their authority must, after the period of the ordinance, be immediately reimbursed to the petitioners in their entirety, without deduction or delay.”
In February, the Government had promulgated a presidential ordinance to impose gas tax outside the network to these internal electric power plants, but did not notify the rates. During the IMF conversations, it became a problem and on March 7, the Government notified a 23% increase in gas rates for industrial captive energy plants (CPP) by imposing a RS791 by MMBTU network tax.
