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IHC issues notices to FBR, OGRA on five percent increase in GST

IHC issues notices to FBR, OGRA on five percent increase in GST

ISLAMABAD: The Islamabad High Court issued notices to Secretary Ministry of Finance, Chairman Federal Board of Revenue and Chairman Oil and Gas Regulatory Authority in response to a writ petition challenging a five percent increase in General Sales Tax on petroleum products.

A single-member bench headed by Justice Aamer Farooq heard the petition filed by Muhammad Mazhar Qayyuam. The petitioner has challenged the Statutory Regulatory Order issued by the Federal Government Dated December 30, 2014 under which GST on petroleum products was increased by five percent. During the course of proceedings, the bench admitted the petition for hearing and issued notices to the above mentioned respondents, directing them to file their replies.

The counsel pleaded before the court that the Government increased GST on petroleum products without taking the parliament into confidence as under Article 77 of the Constitution the Government could not impose any tax or increase GST without the permission of the parliament.

He contended that as per article 162 of the Constitution, no tax has been imposed through an executive order. The recent increase in GST on petroleum products was also in violation of the Supreme Court order, he added. The petitioner prayed before the court to declare the recent increase in GST on petroleum products illegal. Later, the court adjourned the proceedings of the case for an indefinite period.