THE
NATURAL GAS (DEVELOPMENT SURCHARGE),
ORDINANCE, 1967
I OF 1967
24th January, 1967
An Ordinance to provide for the levy and collection of a development surcharge on natural gas and for matters connected therewith.
WHEREAS it is expedient to provide for the levy and collection of a development surcharge on natural gas and for matters connected therewith;
AND WHEREAS the National Assembly is not in session and the President is satisfied that circumstances exist which render immediate legislation necessary;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 29 of the Constitution and of all other powers enabling him in that behalf, the President is pleased to make and promulgate the following Ordinance :-
1. Short title, extent and commencement. (1) This Ordinance may be called the Natural Gas (Development Surcharge) Ordinance, 1967.
(2) It extends to the whole of Pakistan.
(3) It shall come into force at once.
2. Definitions. In this Ordinance, unless there is anything repugnant in the subject or context,–
(1) ‘company’ means a company specified in the Schedule ;
(2) ‘development margin’ means the surcharge payable under section 3;
(3) ‘differential margin’ means the amount by which the fixed sale price exceeds the prescribed price ;
(4) ‘fixed sale price’, in relation to a company or a consumer and in respect of any period, means the sale price as in force on such day, whether before or after the commencement of this Ordinance, as the Central Government may, by notification in the Official Gazette, specify in this behalf;
(5) ‘natural gas’ means gas obtained from above holes and wells consisting primarily of hydrocarbons ;
(6) ‘prescribed price’ means such sale price and tariff as the Central Government may, in accordance with the Natural Gas Rules, 1960, by notification in the official Gazette, declare, in respect of any period, whether before or after the commencement of this Ordinance to be the prescribed price for the purpose of this Ordinance.
3. Levy of Development Surcharge. (1) Every company shall pay to the Central Government a development surcharge equal to the differential margin in respect of natural gas sold by it after thirty-first day of May, 1964.
(2) The development surcharge in respect of natural gas sold before the commencement of this Ordinance shall be paid within such time after such commencement as maybe specified by the Central Government or any officer authorised by it in this behalf.
(3) An interest at the rate of six per cent. shall be payable on any amount due under sub-section (1) or under sub-section (2), if the amount is not paid within the time specified for such payment.
4. Allowance to be made for Development Surcharge for purposes of Income-tax. The amount paid by a company as development surcharge shall be an expenditure for which allowance is to be made under subsection (2) of section 10 of the Income-tax Act, 1922 (IX of 1922), in computing the profits or gains of that company.
5. Maximum of Sale Price. (1) No company shall sell or offer for sale natural gas at a price higher than the fixed sale price.
(2) Where any company contravenes the provisions of sub-section (1), every director, manager, secretary or other officer who was in charge of, and was responsible to, the company for the conduct of its business or for the management of its sales at the time the contravention was committed without his knowledge or that he exercised all due diligence to prevent such contravention, be guilty of an offence punishable with imprisonment for a term which may extend to three years, or with fine, or with both.
6 Cognizance of offence. No court, shall take cognizance of an offence under this Ordinance save on a complaint in writing made by or under the authority of the Central Government.
7. Power to make Rules. (1) The Central Government may, by notification in the official Gazette, make Rules for carrying out the purposes of this Ordinance.
(2) In particular and without prejudice to the generality of the foregoing power, such Rules may provide for :–
(a) the manner and time of payment of development surcharge ; and
(b) any other matter for which provisions is, in the opinion of the Central Government, necessary for carrying into effect the provisions of this Ordinance.
8. Power to amend Schedule. The Central Government may, by notification in the official Gazette, make such amendments and modification in the Schedule as it thinks fit.
SCHEDULE
1. Karachi Gas Company, Karachi.
2. Indus Gas Company, Karachi.
