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IHC restrains Govt from levying 32 percent sales tax over CNG

ISLAMABAD: The Islamabad High Court restrained Government from levying 32 percent sales tax on CNG station owners. IHC ordered to charge only 17 percent of the actual supply price of gas to the stations while hearing a writ petition filed by Al Shareef CNG Station. A single member bench headed by Justice Shaukat Aziz Siddiqui heard the writ petition.

Petitioner pleaded before the court to declare the impugned sales tax Ordinance, 2014 and notifications issued by the government dated June 30, 2013 and December 17, 2013 under which sales tax rate was increased to almost 32%, unlawful and void ab initio.

During the course of proceedings, the bench admitted the petition for hearing and issued a short order on the matter through which it restrained the government from recovering sales tax at 32% on retail price from the CNG stations operators .However, the bench directed that sales tax may be recovered at 17% on actual supply price of gas to the operators till further orders.

Besides, the court issued notices to all respondents, including Federation through Ministry of Petroleum and Natural Resources, Chairman Oil and Gas Regulatory Authority OGRA, Chairman Federal Board of Revenue FBR and General Manager Sui Northern Gas Pipelines Limited SNGPL, directing them to submit their replies on the petition and adjourned the matter for an indefinite period.

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