Ordinance XV of 1967 · 4 pages
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THE NATURAL GAS (DEVELOPMENT SURCHARGE)
ORDINANCE, 1967
CONTENTS
1. Short title, extent and commencement
2. Definitions
3. Levy of Development surcharge
4. Allowance to be made for Development surcharge for purposes of Income-Tax
5. Maximum Sale Price
6. Cognizance of offence
7. Power to make rules
8. Power to amend schedule
THE SCHEDULE.
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THE NATURAL GAS (DEVELOPMENT SURCHARGE)
ORDINANCE, 1967
1
ORDINANCE No. I OF 1967
[23rd May, 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.__ 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 surcharge” means the surcharge payable under section 3;
(3) “differential margin” means the amount by which the fixed sale price exceeds the
prescribed price;
2
[(4) “fixed sale price” means such sale price and tariff, not exceeding 3[forty] rupees
per deca cubic metre], as the 4[Federal Government] may, from time to time, by
notification in the official Gazette, declare to be the fixed sale price for the purposes
of this Ordinance; and different prices and tariffs may be so declared in relation to
different companies and different consumers.]
1
Approved by the National Assembly of Pakistan on the 23rd March, 1967, see Gaz. of P., 1967, Ext. (Rawalpindi), dated the 23rd May, 1967, p.
263.
2
Subs. by the Finance Ordinance, 1969 (16 of 1969), s. 13, for clause (4), (with effect from the first day of July, 1969).
3
Subs. by Act 7 of 1990, s. 5.
4
Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.
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(5) “natural gas” means gas obtained from bore holes and wells consisting primarily
of hydrocarbons;
(6) “prescribed price” means such sale price and tariff as the 4[Federal 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.__ Every company shall 1[collect and] pay to the
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[Federal 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 may be specified by
the 2[Federal Government] or any officer authorised by it in this behalf.
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(3) [An amount at the rate of 4[fifteen] per cent per annum shall be payable in addition
to the] amount due under sub-section (1) or under sub-section (2), if the amount is not paid within
the time specified for such payment [:]5
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[Provided that the Federal Government may, subject to such conditions or restrictions as
it may think fit to impose, by notification in the official Gazette, grant only 6[two time] exemption
to any company from the requirement to pay additional amount payable under this sub-section,
and a notification issued under this proviso shall be effective from the date specified therein
notwithstanding the date of its issue in the official Gazette [:]6
6
[Provided further that exemption given to any company under the foregoing proviso shall
always be supported by reasons justifying such exemption issued with the approval of the
Secretary and Minister for Petroleum and Natural Resources Division.]
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 7[section 5[20] of the Income Tax Ordinance, 5[2001]
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[(XLIX of 2001)] in computing the profits or gains of that company.
5. Maximum Sale Price. 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,
manger, secretary or other officer who was in charge of, and was responsible to, the company for
1
Ins. By Finance Act XVII of 2012, s. 3 (w.e.f. 01-07-2012).
2
Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.
3
Subs. by the Natural Gas (Development Surcharge) (Amdt.) Ordinance, 1981 (10 of 1981) s. 3, for certain words.
4
Subs. by Act I of 03, s. 4.
5
Subs. and added by Finance Act IV of 2007, s. 5 (w.e.f. 01-07-2007).
6
Subs. and added by Finance Act XVII of 2012, s. 3 (w.e.f. 01-07-2012).
7
Subs. by the Federal Laws (Revision and Declaration) Ordinance 1981 (27 of 1981), s. 3 and Sch., II, for certain words.
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the conduct of its business or for the management of its sales at the time the contravention was
committed, shall, unless he proves that 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 1[Federal
Government].
7. Power to make rules. The 1[Federal Government] may, by notification in the
official Gazette, make 2rules 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 provision is, in the opinion of the 1[Federal
Government], necessary for carrying into effect the provisions of this
Ordinance.
8. Power to amend Schedule. The 1[Federal Government] may, by notification in the
official Gazette, make such amendments and modifications in the Schedule as it thinks fit.
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[SCHEDULE
1. Sui Northern Gas Pipelines Limited.
2. Sui Northern Gas Company Limited.
3. Mari Gas Company Limited.]
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[4. Pakistan Petroleum Limited.]
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[5. Tullow Pakistan (Development) Limited.]
1
Subs. by F.A.O., 1975, Art. 2 and Table, for “Central Government”.
2
For such rules see, Gaz. of P., 1967, Ext., p. 54, dated 8-2-1967.
3
Subs. by S.R.O. No. 426(I)/89, dt. 24-4-89, for the Schedule, which was previously amended by various S.R.O. Notifications from time to time.
4
Added by S.R.O. No. 797 (I)/89, dt. 29-7-1989.
5
Added by S.R.O. No. 1126(I)/99, dt. 29-10-1999.
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