Govt Developing Mechanism to Recover Levy from CPPs

Staff Report:
Islamabad: The government is developing a mechanism to recover the arrears of levy on gas from captive power plants.

The captive power plants had moved to Islamabad High Court against the recovery of levy from them,

The government had imposed a levy on supply of gas to captive power plants following commitment with International Monetary Fund (IMF).

In line with legal framework of the CPP Levy Ordinance 2025, the government is developing a recovery mechanism for months of February and March 2025.

The petroleum division has sought a legal opinion from the Law and Justice Division and the Attorney General’s Office for the retrospective applicability of the March 7, 2025, levy rate and its recoverability from CPP consumers.

Petroleum division believed that the levy rate notification of March 7 has remained a valid and has not been withdrawn.

However, the Petroleum Division plans to issue further instructions to the Sui gas companies once the matter is settled after receiving legal opinion.

Pakistan FY25 Budget: Ambitious Tax Reforms and Growth Targets Unveiled

The Directorate General (Gas) of the Petroleum Division has directed SSGCL and SNGPL to collect the levy from Captive Power Plants (CPPs) for February 2025.

DG Gas Petroleum Division has written a letter to the Managing Directors of both Sui companies.

In a letter, he has advised both gas utility companies to recover the levy from the concerned captive consumers for February 2025,