Natural Gas (Development Surcharge) Ordinance, 1967

This 1967 Ordinance provides for levying and collecting a 'development surcharge' on natural gas sold by specified gas companies, currently listed in the Schedule as Sui Northern Gas Pipelines Limited, Sui Northern Gas Company Limited, Mari Gas Company Limited, Pakistan Petroleum Limited, and Tullow Pakistan (Development) Limited. Section 3 requires every listed company to collect and pay the Federal Government a surcharge equal to the 'differential margin,' the amount by which its government-fixed sale price exceeds the government-prescribed price, on gas sold after 31 May 1964; if the surcharge is paid late, an additional amount at fifteen per cent per annum is due, though the Federal Government may grant a company up to two exemptions from this additional charge, each requiring written justification approved by the Secretary and Minister for Petroleum and Natural Resources.

Section 4 lets a company treat the surcharge it pays as a deductible business expense under the Income Tax Ordinance, 2001. Section 5 caps the price a company may charge at the government-set 'fixed sale price' (an amendment set this at up to forty rupees per deca cubic metre); if a company sells above that price, any director, manager, secretary or other officer responsible for the company's business or sales at the time is guilty of an offence punishable with imprisonment up to three years, or a fine, or both, unless they prove the violation happened without their knowledge despite due diligence.

Section 6 requires a written complaint from the Federal Government before a court can take up an offence under the Ordinance. Sections 7 and 8 give the Federal Government power to make rules and to amend the Schedule, meaning it can add or remove companies covered by the surcharge.