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Published 24 Apr, 2015 06:35am

KP Assembly demands federal excise duty on crude oil

PESHAWAR: The Khyber Pakhtunkhwa Assembly on Thursday asked the federal government to impose the federal excise duty on crude oil, pay arrears and mark-up in the head of net hydel profit to the province, and ensure maximum increase in the province’s share in Public Sector Development Programme.

The call was given in joint resolutions tabled by the treasury and opposition benches in the sitting, which was chaired by Speaker Asad Qaisar.

A resolution moved by parliamentary leader of Qaumi Watan Party Sikandar Hayat Sherpao asked the petroleum and natural resources ministry to notify the levy of ‘federal oil excise duty’ on crude oil with immediate effect.

It said after notification was issued, the Oil and Gas Regulatory Authority would include the said duty in the petroleum price fixing formula requiring the federal government to immediately implement the clause of the Constitution while following all other legal formalities.

The assembly also demanded that under Article 158 of the Constitution, the natural gas produced in the province be provided on the discretion of the provincial government, so it could be utilised it according to its priorities, which would put the province on the track of progress and development.

The resolution said instead of handing over of 100mcf gas to Private Power Infrastructure Board (PPIB), it should be handed over to the provincial government to install thermal power plant and generate 800mw electricity and thus, ridding the province of power loadshedding.

The assembly also said provision of 14.82 per cent of the imported LNG would accelerate the pace of development in the province.

It demanded of the federal government to issue immediate directives to Sui Northern Gas Pipeline Limited (SNGPL) to ensure the installation of gas meters to ensure recovery of bills from consumers in Karak, Kohat and Hangu districts.

Through another resolution, the house drew attention of the federal government towards the unpaid amount in head of the capped net hydel profit, which also includes arrears in head of mark-up charged due to the lack of payment.

It also demanded that the immediate payment of the due amount of money be made so that the provincial government could make planning for the next budget.

The assembly demanded provision of sovereign guarantee to ensure foreign investment in the province for power projects in hydel and other sectors.

Another resolution passed by the house asked the federal government to give the maximum increase in the share of Khyber Pakhtunkhwa in PSDP funds and immediate release of outstanding 83 per cent funds to enable the timely completion of projects.

The assembly also demanded declaration of the PSDP funds non-lapsable.

Published in Dawn, April 24th, 2015

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