Updated: Thursday October 06, 2016/AlKhamis
Muharram 05, 1438/Bruhaspathivara
Asvina 14, 1938, at 12:26:35 AM
The Gas Infrastructure Development Cess Act, 2011
ACT No. XXI OF 2011
An Act for imposition and collection of
gas infrastructure development cess
Whereas it is expedient to provide for
imposition and collection of infrastructure development cess on natural gas and
for matters connected therewith;
It is hereby enacted as follows:---
1. Short title, extent and
commencement.__ (1) This Act may be called the Gas Infrastructure
Development Cess Act, 2011.
(2) It extends to the whole of
(3) It shall come into force at once.
2. Definitions.__In this Act, unless there is anything repugnant in the
subject or context,---
(a) “cess”
means the gas infrastructure development cess chargeable from gas consumers,
other than the domestic sector consumers, of the company over and above the
fixed sale price and payable under section 3;
(b) “company”
means a company specified in the First Schedule;
(c) “fixed
sale price” in relation to a company or a consumer and in respect of any period
means the sale price as in force on such day, whether before or after the
commencement of this Act, as the Federal Government may, by notification in the
official Gazette, specify in this behalf;
(d) “House”
means the National Assembly;
(e) “natural
gas” means hydrocarbons or mixture of hydrocarbons and other gases which at
sixty degrees Fahrenheit and atmospheric pressure are in the gaseous state
(including gas from gas wells, gas produced with crude oil and residue gas and
products resulting from the processing of gas) consisting primarily of methane,
together with any other substance produced with such hydrocarbons;
(f) “prescribed”
mean prescribed by the rules; and
(g) “rules”
means rules made under this Act.
3. Levy of cess.__ (1) The company shall collect and pay cess at the
rates specified in the Second Schedule and in such manner as the Federal
Government may prescribe.
4.
Utilization of cess.__ (1) The cess shall be utilized for or in connection
with infrastructure development of Iran Pakistan Pipeline Project, Turkmenistan
Afghanistan Pakistan India (TAPI) Pipeline Project, LNG or other projects or
for price equalization of other imported alternative fuels including LPG.
(2) An
annual Report in respect of the utilization of the cess shall be laid before
the House after three months of the end of the each fiscal year.
5.
Allowance to be made for cess for purposes of income tax.__The cess paid by a company shall be an expenditure for
which allowance is to be made under the Income Tax Ordinance, 2001 (XLIX of
2001) in computing the profits or gains of that company.
6.
Power to make rules.__(1) The Federal Government may, by notification in the
official Gazette, make rules for carrying out the purposes of this Act.
(2) In
particular and without prejudice to the generality of the foregoing power, such
rules may provide for,---
(a) the manner and time of
payment of cess;
(b) the manner of
collection and recovery of arrears of cess; and
(c) any other matter, not
inconsistent with the provisions of this Act, for which provision is, in the
opinion of the Federal Government, necessary for carrying out the purposes of
this Act.
7.
Power to amend the First Schedule.__The Federal Government may, by notification in the
official Gazette, make such amendments in the First Schedule as it deems fit.
THE FIRST SCHEDULE
[See section 2 (b)]
(1) Sui Northern Gas
Pipelines Limited;
(2) Sui Southern Gas
Company Limited;
(3) Mari Gas Company
Limited;
(4) Pakistan Petroleum
Limited; and
(5) Tullow Pakistan
Development Limited.
1[THE SECOND SCHEDULE
[see section 3(1)]
S.No. |
Sector |
Maximum
Rate of Cess (Rs/MMNTU) |
1 |
2 |
3 |
1. |
Fertilizer-Feed
Stock (Except for fertilizer plants having fixed prices contracts) |
300 |
2. |
Compressed
Natural Gas (CNG) |
|
(a) |
Region-I
KPK, Balochistan and Potohar Region ( |
300 |
(b) |
Region-II
Sindh and |
200 |
3. |
Industrial
(including captive power) |
100 |
4 |
WAPDA/KESC |
100 |
5. |
Independent
Power Plants (IPPs) |
100 |
6. |
Commercial |
- |
7. |
Domestic |
- |
8. |
Cement |
- |
9. |
|
|
1Subs. by Act XVII of 2012, s. 17.
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