ISLAMABAD - The Standing Committee on Finance has approved the Petroleum Levy Amendment Bill, 2011, whereas Levy tax of Rs. 14 per kilogram would be applied on LPG.
Fouzia Wahab in Islamabad chaired the Standing Committee’s session. Federal Minister for Petroleum Dr. Asim Hussain briefed the committee that under the Petroleum Products(Petroleum Levy) Ordinance, 1961, Licenses and companies dealing in Petroleum products pay petroleum levy to government and Petroleum products for the purposes of this Ordinance are mentioned in the first schedule. He further added that in terms of Section 3(1) of the Ordinance petroleum levy is payable on petroleum products as mentioned in the fifth Schedule alongwith the applicable rates of levy.
Minister further briefed that the Federal Government was authorized to modify or change the Schedules from time to time; nevertheless by way of amendment made through Finance Act, 2009 in the Section 7 of the Ordinance, the Federal Government is constrained to modify, amend or change the Fifth Schedule. As the consequence of this amendment, change in the rates or addition or deletion of any product requires statutory amendment, every time.
He also informed that the Bill in hand has been introduced keeping in view the requirement to revise the rates of levy on the basis of products from the scope of Fifth Schedule, it is necessary to revive the Section 7 in its original from, and omit Fifth Schedule from the Ordinance.
Secretary Finance briefed the committee on Gas Infrastructure Development Cess Bill, 2011 and stated that it is expedient to provide for imposition and collection of infrastructure development Cess on natural gas to abridge/meet the widening demand supply Pipelines Project, Turkmenistan Afghanistan Pakistan India(TAPI) Pipeline Project, LNG import projects and LPG supply enhancement projects, in public as well as in private sectors. He also added that for the development of required infrastructure the imposition and collection of gas infrastructure development cess has become necessary otherwise Government of Pakistan would be forced to import liquid fuels, which are much costlier as compared to gas.
The Committee appreciated that the price distortions in the Petroleum products should be done away with and the funds collected through the Cess Act should compulsorily be spent on infrastructure development and shouldn’t be misused, politically or otherwise. The Committee passed the both Bills(Gas Infrastructure Development Cess Bill, 2011 and Petroleum Products(Petroleum Levy) (Amendment) Bill,2011) unanimously.
Meeting was attended by Aftab Shaban Mirani, Arif Aziz Sheikh, Dr. Nafisa Shah, Shahnaz Wazir Ali, Bushra Gohar, Munir Khan Orakzai, Ch. Qamar Zaman Kaira, Nazar Muhammad Gondal, Mian Abdul Sattar and Shahid Khaqan Abbasi, MNAs and Minister for Petroleum & Natural Resources, besides officers from Ministry of Finance and M/O Petroleum.
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