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APTMA advices Pak Govt to reduce cess on gas
Jul '12
Chairman All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has urged the government to immediately cut the Gas Infrastructure Development Cess to Rs50 per MMBTU, as the industry is unable to pay Rs100 per MMBTU under the prevailing adverse business environment for the industry.

He has strongly objected to the sudden increase in the Gas Infrastructure Development Cess from Rs13MMBTU to Rs100 per MMBTU and the industry was taking it as a heavy burden impacting its viability.

According to him, the textile industry was already operating under capacity due to non-availability of gas on the one hand and unbearable interest rates on the other.

Secondly, Mohsin said, the government should ensure strict implementation of the mechanism to utilize the Gas Infrastructure Development Cess for the purpose it is being collected from the industry.

He stressed the point that the Gas Infrastructure Development Cess should be utilized for prescribed purposes instead of meeting budgetary deficits or extending subsidies.

Chairman APTMA said all funds collected under the Gas Infrastructure Development Cess should be ensured to utilize for infrastructure development on projects including Turkmenistan, Afghanistan, Pakistan and India (TAPI) and Iran and Pakistan (IP) gas pipelines and other projects or LNG import. The government should share the required mechanism for development of infrastructure of these projects with the stakeholders forthwith, he added.

He said Cess collected under the infrastructure development on these projects should go to escrow account.

Chairman APTMA has expressed the hope that the government would consider the suggestions from APTMA and adopt them in the larger interest of industry and national economy. He said APTMA should also be taken on board for expeditious implementation of gas infrastructure development in the country.

All Pakistan Textile Mills Association (APTMA)

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