ISLAMABAD, Nov 29: The Economic Coordination Committee (ECC) has approved the levy of central excise duty (CED) at a rate of Rs5.09 per million British Thermal Unit (BTU) on natural gas on energy content basis.

The levy would be effective from July 1, 2003, as it would result into a revenue loss in case implemented from the current financial year, reliable sources told Dawn on Friday.

The summary was moved by the Ministry of Petroleum seeking uniformity of CED levy to remove the discrepancy, the sources said.

Keeping in view the higher investment and the recurring expenditure on gas turbines, it was proposed that CED, which was presently fixed on volumetric basis at Rs4.84 per MCFs may be converted into Rs5.09mm BTU on energy content basis to avoid discrepancy and disadvantage to the power plants or other buyers operating on BTU gas.

The gas in Potohar belt was of high BTU content, while that of Sindh was of low BTU content, through this change the user of higher heat content will pay CED according to its utilization based on caloric value, added the sources.