ISLAMABAD: In another concession to the industrial sector, the government will be providing a relief package worth Rs50 billion by decreasing the rate of gas infrastructure development cess (GIDC) starting 1st January 2019.
According to a report in Express Tribune, sources said the government had taken the decision to decrease the GIDC rates by around 50%.
Under GIDC head, the government had targeted a collection of Rs100 billion in the current financial year 2018-19 and from this, the industrial sector will be extended relief of Rs50 billion.
The industrial sector is already a defaulter of the government and owes Rs410 billion on account of GIDC.
From the entire amount owed, the textile sector is liable to pay Rs80 billion, fertilizer plants Rs80 billion and CNG outlets Rs80 billion.
During a cabinet meeting held on 24th January, it had foregone payment of Rs200 billion out of the arrears and the discounted GIDC rates will be available to those sectors, who pay 50% of their outstanding amount.
Fertilizer plants, which are already a beneficiary of discounted feedstock gas supply are set to receive further benefits under the relief package.
The GIDC for feedstock gas to fertilizer plants will be decreased to zero and the rate for fuel gas for these plants will be slashed by 50%.
Also, GIDC rate for gas utilized as feedstock and fuel by CNG stations and old fertilizer plants will be slashed by 50%.