English Version:
Minister of State for Finance and Railways, Bilal Azhar Kayani, has directed the Petroleum Division and OGRA to immediately resolve issues related to the Grid Transition Levy and the retrospective actualization of RLNG charges for the textile sector. According to sources, the instructions were issued during a meeting with a business delegation under the Special Investment Facilitation Council (SIFC).
Earlier, industry representatives argued that the Grid Transition Levy had disproportionately affected high-efficiency Combined Heat and Power (CHP) plants, even though these systems utilize waste heat in industrial processes and achieve efficiency levels between 60% and 80%. They proposed that CHP plants in the industrial gas tariff category be reclassified based on a minimum 60% efficiency standard and annual third-party audits. It was also recommended that RLNG be supplied at its actual (non-subsidized) price.
A delegation comprising APTMA and the Karachi Chamber of Commerce & Industry (KCCI) further complained that sales tax was being charged separately on the Captive Levy. On the matter of retrospective RLNG charges, the meeting decided that OGRA and the Petroleum Division would jointly take steps to resolve the issue. Both institutions will provide quarterly progress updates on the actualization of RLNG charges.
In response to APTMA’s concerns, the Petroleum Division will review the calculation mechanism for the Grid Transition Levy, particularly its dependence on peak-hour tariff and the constraints of the IMF program. The Power Division will provide clarification on the imposition of sales tax on Captive Levy by Friday, 14 November, which will be forwarded to the SIFC and the Minister’s Office.
The business community claimed that Rs 75 billion in retrospective RLNG charges are being added to industrial electricity bills, placing significant financial pressure on industries since accounts for the relevant period have already been closed. They added that although OGRA’s actualization of RLNG charges has been challenged in court, bills continue to be issued regardless. The FPCCI and GCCI demanded that the recovery of these charges be deferred until a court verdict is issued.
The FPCCI also objected to the deployment of FBR officials in specific factories under Section 40B of the Sales Tax Act, calling it discriminatory. The Minister directed that complaints raised by the Multan Chamber of Commerce under Section 40B must be addressed in the committee’s next meeting.
Meanwhile, the 45-day concession for importing electronics from Iran is about to expire. The Quetta Chamber of Commerce requested a one-year extension, which was discussed during the meeting.
