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Business Recorder
23-05-2025
- Business
- Business Recorder
NA passes ‘Off the Grid (CPP) Levy Bill'
ISLAMABAD: The National Assembly, Thursday, passed, 'The Off the Grid (Captive Power Plants) Levy Bill, 2025', which states that the rate of levy shall be increased by five percent immediately and further increased to 10 percent by July 2025, 15 percent by February 2026 and 20 percent by August 2026. Federal Minister for Petroleum Ali Pervaiz Malik, presented this money bill in the Lower House of the Parliament for passage, the opposition members opposed it. The House passed the bill with majority. Senate body approves Off-the-Grid (CPPs) Levy Bill, 2025 The clause 03 of the bill states, 'Imposition and collection of levy. - (1) Subject to section 4, every captive power plant shallpay to the federal government a levy on consumption of natural gas or RLNG, over and above the sale price notified under section 8 and section 43B of the Oil and Gas Regulatory Authority Ordinance, 2002, at such rate as notified by the federal government in the official Gazette, from time to time.(2) The agent shall be responsible for billing of levy to captive power plants, its collection and onward payment to the federal government in the manner as may be prescribed.' The clause 04 of the bill further reads, 'Calculation of rate of levy. - Before notifying the levy under sub-section (1) of section 3,the divisions concerned under the Rules of Business, 1973 shall calculate the rate of levy by taking into account the difference of power tariff of industrial B3 category, notified by Nepra, and the self-power generation cost of the captive power plant at the gas tariff notified by OGRA: Provided that the rate of levy shall be increased by five percent immediately and further increased to ten percent by July, 2025, fifteen percent by February, 2026 and twenty percent by August, 2026.' About the utilisation of levy, clause 05 of the bill, says, '(1) The levy shall be utilized by the Federal Government for reduction of power generation tariff for all consumer categories of the power sector.(2) An annual report in respect of the utilization of the levy shall be laid before both the Houses of Majlis-e-Shoora (Parliament) after three months from the end of each fiscal year.' The clause 06 of the bill states:'Consequences for non-payment of levy. - (1) If the amount of levy is not paid within the specified time by the captive power plant, the same shall be recoverable under sub-section (2) and incase of persistent default in payment, the agent shall terminate the gas supplies to the defaulted captive power plant.(2) The amount of levy due but not paid within the time allowed shall be recoverable under the provisions of the Public Finance Management Act, 2019.' Moreover, clause 07 of the bill explains, 'Allowance to be made for levy for purposes of Income Tax. - The levy paid by a captive power plant shall be an expenditure for which allowance is to be made under the Income TaxOrdinance,2001 in computing its profits or gains.' To remove any difficulty for implementation on the law, clause 10 of the bill gives power to the president of Pakistan to settle it. Furthermore, Clause 10 of the bill states, '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 provisions of this Act, to remove the difficulty.' Copyright Business Recorder, 2025
Express Tribune
15-05-2025
- Business
- Express Tribune
Captive power levy sparks Senate clash
Federal Law Minister Azam Nazeer Tarar and Opposition Leader Shibli Faraz engaged in a heated debate on Thursday over a money bill proposing an "off-the-grid" levy on gas-based captive power plants. The exchange took place after Senator Anusha Rahman, on behalf of the Standing Committee on Finance Chairman Saleem Mandviwalla, presented the committee's report on the Off The Grid (Captive Power Plants) Levy Bill, 2025 in the house. Opposing the bill, Fraz argued that imposing a levy on captive power plants would negatively impact not only industries but also housing societies that depend on them. He warned that the added cost would hurt industrial growth. In response, Law Minister Tarar said that electricity prices had dropped by Rs10 per unit in the past two months. He added that the decision to impose the levy was made after thorough deliberation by Prime Minister Shehbaz Sharif. "Re-negotiation has been carried out with three power plants, and all the things have been discussed in the standing committee," Tarar told Faraz. "I was hoping that the opposition leader would himself attend the committee meetings on the matter," he added. Tarar said that captive power plants earned significant profits over their cost, adding that poor people were also taken into consideration while drafting the policy. Faraz, meanwhile, insisted that with the imposition of the levy, electricity for industries will become expensive. "Unemployment will increase due to the high cost of electricity for industries." He then addressed directly to the minister, saying: "Talk about the captive power plants, instead of my presence in the committee meeting. While presenting the report, Anusha Rehman said that the recommendations on the money bill had been approved unanimously by the standing committee. She said that the Senate's recommendations would also be sent to the National Assembly Secretariat. Earlier, the Senate Committee on Finance met with Anusha Rehman in the chair. During the meeting, Petroleum Secretary Momin Agha told the committee members that the government wanted to transfer captive power plants to the electricity grid. While giving a briefing on the bill, the additional finance secretary said that 70% of captive plants were in Sindh. After a detailed review, the chair ruled that this bill was passed unanimously and recommendations would be sent to the house. Meanwhile, four committee reports were also presented in the Senate. Senator Shahadat Awan, on behalf of Farooq Naek, chairman of Standing Committee on Law and Justice, presented the report on The Civil Courts (Amendment) Bill, 2025. Standing Committee on Federal Education and Professional Training Chairperson Senator Bushra Anjum Butt presented the report on The Nexus International University of Health Emerging Sciences and Technologies, Islamabad Bill, 2025. Minister for Human Rights, Senator Azam Nazeer Tarar laid before the Senate the Annual Reports of the National Commission for Human Rights for the years 2023 and 2024.
