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  • Dec 19th, 2012
  • Comments Off on Gas consumers: MoP all set to impose DDS
The Ministry of Petroleum is all set to impose District Development Surcharge (DDS) @ Rs 15 per Million British Thermal Unit (mmbtu) on all gas consumers with an objective to utilise the fund on the development of gas producing areas. According to Petroleum Ministry officials privy to the deliberations, the ministry will forward a proposal in this regard to the Council of Common Interests (CCI) and the Parliament to get the formal approval.

The government would generate Rs 1 billion per month if the CCI and the Parliament should approve the surcharge, officials added. "The amount generated through the tax would be utilised on the uplift of the gas producing districts of the country. Local parliamentarians and District Co-ordination Officer (DCO) of the particular district would be authorised to use these funds," officials said.

According to Petroleum Ministry officials, the government is already collecting Gas Infrastructure Development Surcharge (GIDS) from all the consumers for the uplift of the gas producing regions, which are distributed among the provincial governments, but these governments have failed in utilising these funds on the development of these areas. Gas producing areas like District Dera Bugti in Balochistan, Badin in Sindh and Karak in Khyber-Pakhtunkhawa are among the most backward areas of the country, the government is aiming to spend these funds on the basic infrastructure.

Copyright Business Recorder, 2012


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