The Competition Commission of Pakistan (CCP) has issued a policy note to the government, recommending equal levy of Gas Infrastructure Development Cess (GIDC) for all fertiliser plants to create a level-playing field in the urea market.
“The GIDC has placed the pre-2001 plants at a cost disadvantage, which has distorted the competition in the urea market,” the CCP said.
It has proposed that the levy of GIDC on feedstock for pre-2001 fertiliser plants be withdrawn and that the Second Schedule of the GIDC Act be amended to rationalise the cess on fuel gas used by fertiliser plants, eliminating the cost disadvantage to pre-2001 fertiliser plants.
The CCP took notice of concerns raised by fertiliser companies against the GIDC which they say discriminates against the fertiliser plants installed before the Fertiliser Policy 2001 compared to the plants that were commissioned and became operative after the policy.
