Gas Infrastructure Development Cess Act, 2015

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THE GAS INFRASTRUCTURE DEVELOPMENT CESS ACT, 2015 
 
 
 
CONTENTS 
 
 
Sections: 
1. Short title, extent and commencement. 
2. Definitions. 
3. Levy of cess. 
4. Utilization of cess. 
5. Allowance to be made for cess for purposes of income tax. 
6. Power to make rules. 
7. Power to amend the First Schedule. 
8. Validation of the cess collected. 
9. Removal of difficulties. 
10.  
 
THE FIRST SCHEDULE 
THE SECOND SCHEDULE 
 
  
Updated till 12.11.2021 

 
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THE GAS INFRASTRUCTURE DEVELOPMENT CESS ACT, 2015 
(ACT NO. IV OF 2015) 
[21st May, 2015] 
An Act to levy and collect the Gas Infrastructure Development Cess 
 WHEREAS it is expedient to provide for the validation, imposition, levy and collection of 
infrastructure development cess on natural gas and for matter 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, 2015. 
(2) It extends to the whole of Pakistan. 
(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 levied and chargeable from 
gas consumers, other than the domestic sector consumer, of the company over and 
above the sale price and payable under section 3; 
(b) “company” means a company specified in the First Schedule; 
(c) “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; 
(d) “prescribed” means prescribed by the rules; 
(e) “rules” means rules made under this Act; 
(f) “sale price” means the price notified under section 8 of the Oil and Gas Regulatory 
Authority Ordinance, 2002 (XVII of 2002) at which a licensee for natural gas is 
authorized under said Ordinance and license to sell natural gas to any category of 
retail consumer for natural gas as well as the price charged by gas company under 
third party direct sale arrangement where price is not notified by Oil and Gas 
Regulatory Authority; and 
(g) “Schedule” means a Schedule to this Act. 
 
3. Levy of cess.⎯(1) The cess shall be levied and ch arged by the Federal Government 
from gas consumers, other than the domestic sector consumers, or the company at the rates as 
 
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provided in the Second Schedule to this Act. The gas company shall be responsible for billing of cess 
to gas consumers, its collection from gas consumers and its onward payment to Federal Government 
in the manner as prescribed by the Federal Government: 
 (2) 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. 
 Provided that the Federal Government may decide to levy any rate of cess on any category of 
gas consumers subject to maximum rate provided in the Second Schedule. 
(3) A mark up at the rate of four percent above three months KIBOR prescribed by the 
Federal Government shall be payable by the gas consumer or the company on any amount due under 
sub-section (1), if the said amount is not paid by the said gas consumer or by the said company 
respectively within the prescribed time, mark up payable by the gas company or any mark up payable 
by gas consumer to the gas company shall be deposi ted in such manner as the Federal Government 
may prescribe: 
  1[Provided that the said mark up shall be payable from the date of commencement of the Gas 
Infrastructure Development Cess (Amendment) Act, 2018.] 
4. Utilization of cess.⎯(1) The cess shall be utilized by the Federal Government for or 
in connection with infrastructure development of Iran Pakistan Pipeline Project, Turkmenistan -
Afghanistan-Pakistan-India (TAPI) Pipeline Project, LNG or other ancillary projects. 
(2) An annual report in respe ct of the utilization of the cess shall be laid before the both 
Houses of Majlis-e-Shoora (Parliament) after three months at 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 the 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. 
____________________________________________________________________ 
1Subs. by the Gas Infrastructure Development Cess (Amendment) Act, 2018 (XXXIII of 2018), S. 2. 
  
 
 
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 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. 
 8. Validation of the cess collected. ⎯(1) Notwithstanding any omission or anything to 
the contrary contained in the Gas Infrastructure Development Cess Act, 2011 (XXI of 2011) or the 
Gas Infrastructure Development Cess Ordinance, 2014 (VI of 2014) or the rules made thereunder, or 
anything to the contrary contained in any decree, judgment or order of any Court, the cess levied, 
charged, collected or realized by the company from gas consumers under the aforesa id Act or 
Ordinance shall be deemed to have been validly levied, charged, collected or realized under the 
provisions of this Act. 
 (2) Where any cess referred to in sub-section (1) has not been paid or realized before the 
coming into force of this Act or if so paid or realized, has been refunded to or adjusted against other 
fees or taxes or charges payable by the gas consumers or the company, the same shall be recoverable 
in accordance with the provisions of this Act: 
  Provided that the said Cess shall not be collected from industrial sector excluding 
Fertilizer Fuel Stock, mentioned at S.No. 3 of the Second Schedule to both the Gas Infrastructure 
Development Cess Act, 2011 (XXI of 2011) and the Gas Infrastructure Development Cess Ordinance, 
2014 (VI of 2014), if it has not been collected by it: 
  Provided further that where gas consumers have collected the said Cess at the rates 
under the Gas Infrastructure Development Cess Act, 2011 (XXI of 2011) and the Gas Infrastructure 
Development Cess Ordinance, 2014 (VI of 2014), the collection of the said Cess shall be made on 
the said rates. 
  1[(3) For CNG sector, half of cess levied or charged from the first day of January, 2012 to 
the twenty-first day of May, 2015 (both days inclusive) in accordance wit h notifications issued by 
the Federal Government, from time to time, shall be paid by CNG stations who enter into an 
agreement with Sui Northern Gas Pipelines Limited or Sui -Southern Gas Company Limited, as the 
case may be, in prescribed manner: 
Provided t hat the amount shall be recovered in two tranches, first within one month and 
second within three months from commencement of the Gas Infrastructure Development Cess 
(Amendment) Act, 20I8: 
Provided further that the dispensation made in this sub-section shall not be available to those 
CNG stations who fail to enter into an agreement with Sui -Northern Gas Pipelines Limited or Sui -
Southern Gas Company Limited, as the case may be, within thirty days of the commencement of the 
Gas Infrastructure Development Cess (Amendment) Act, 2018.] 
9. Removal of difficulties.⎯If any difficulty arises in giving effect to the provisions of 
this Act, the President may make an order, not inconsistent with the provision of this Act, to remove 
the difficulty. 
________________________________________________________________________ 
1Added by the Gas Infrastructure Development Cess (Amendment) Act, 2018 (XXXIII of 2018), S. 3.  
 
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10. The Gas Infrastructure Development Cess Act, 2011 (XXI of 2011), is hereby 
repealed. 
 
THE FIRST SCHEDULE 
[See section 2(b)] 
1. Sui Northern Gas Pipelines Limited. 
2. Sui Southern Gas Company Limited. 
3. Mari Petroleum Company Limited (formerly Mari Gas Company Limited). 
4. Pakistan Petroleum Limited. 
5. Tullow Pakistan Development Limited. 
6. Oil and Gas Development Company Limited. 
7. Any other company engaged in sale of gas to any category of gas consumers as may be 
 notified in the official Gazette. 
 
THE SECOND SCHEDULE 
[See section 3] 
 
S. No.                 Sector                                  Maximum Rate of Cess (Rs./MMBTU) 
(1)                         (2)                                                                 (3) 
1.                         Fertilizer-Feed (Old)                                      300.00 
2.                         Fertilizer-Feed (New)                                     300.00 
3.                         Fertilizer-Fuel                                                 150.00 
4.                         Captive Power                                                 200.00 
5.                         Industry                                                           100.00 
6.                         KESC/GENCO                                               100.00 
7.                         IPPs                                                                 100.00 
8.                         CNG Region-1                                                263.56 
9.                         CNG Region-2                                                200.00 
 
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