Islamabad:
Islamabad High Court (IHC) has allowed the government to collect gas tax from captivity, but prevented it from spending the money until ad hoc legislation receives approval of parliament in an order addressing the IMF’s concerns for now.
In its order, the court lifted conditional on its three -week -old stays to restore RS791 per year. MMBTU gas tax from owners of the factories using gas to produce internal electricity.
The tax has been imposed on the IMF’s instructions to force industries switching from gas to the national power network.
The government wanted to spend the money to reduce electricity prices by approx. RS1 device in line with an understanding of IMF.
The court released its reserved order after AGP Mansoor Usman Awan through an application that was applied for holiday by the stay under.
“When considering the foregoing, the civilian miscellaneous use is permitted, and the preliminary order is revoked subject to the following express conditions,” reads the order of the judge.
The court instructed that “all tax amounts collected from the petitions in accordance with the intended ordinance shall be deposited and preserved in the federal consolidated fund during the validity of the regulation, ie 120 days from its promulgation”.
The court also gave up that the money should not be allocated, transferred or used for any purpose other than that of the intended ordinance.
The order stated that “in the event that the intended ordinance does not receive parliamentary approval, all amounts collected under its authority, according to the regulation, must immediately repaid to the Peters fully without a deduction or delay”.
In February, the government had promised a presidential regulation to introduce gas tax outside the grid of these internal power plants but did not inform the rates. During the IMF negotiations, it became a question, and on March 7, the government informed a 23% increase in gas rates for industrial captivity works (CPPs) by imposing an RS791 per year. MMBTU grille tax.
