Textile Exporters Offer Out Of Court Settlement Plan To Resolve GIDC Issue

(@ChaudhryMAli88)

Textile exporters offer out of court settlement plan to resolve GIDC issue

FAISALABAD, (UrduPoint / Pakistan Point News - 17th Jan, 2019 ) ::Pakistan Textile Exporters Association (PTEA) has offered an out of court settlement plan to the government to resolve long outstanding issue of Gas Infrastructure Development Cess (GIDC) levied on gas supply to export oriented textile industry prior and post GIDC Act-2015.

Talking to media, PTEA Chairman Khurram Mukhtar said that out of the court settlement would release the financial stress of textile manufacturers and help increase the industrial activities.

He appreciated the government for its consent to negotiate an out of court solution of long outstanding GIDC issue.

Khurram Mukhtar said now the government in order to ease out the financial stress on export oriented textile industry, has consented to settle down the issue out of the court.

He said that textile manufacturers, after detailed deliberations, proposed the government that in accordance with the section 8 sub section (2) of the GIDC Act 2015, no GIDC should be charged from all categories (Captive and Processing (Industrial) before promulgation of GIDC Act and amounts paid prior to implementation of the Act should be adjusted for both Captive and Processing (Industry) consumers, whereas GIDC should be levied from implementation of the Act to September 27, 2018 @Rs.

100/mmBTU for Captive Power consumers and @ Rs. 50/mmBTU for Industrial consumers.

He further said that gas supply for zero rated industry including captive power after September 27, 2018 onward be ensured @USD 6.5/mmBTU inclusive of GIDC in order to maintain regional competitiveness, whereas arrears of GIDC, if any, be recovered in 8 quarterly equal installments w.e.f the date of agreement.

He hoped that the government would give due consideration on the proposed settlement plan and the issue would be resolved amicably.

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