The Supreme Court on Friday asked the Federation to submit details of General Sales Tax (GST) collected by Federal Board of Revenue (FBR) on petroleum products during the last six fiscal years (2007-2013). Hearing a suo motu notice on GST on petroleum products under Section 3 of the GST Act, a 3-judge bench headed by Chief Justice Iftikhar Muhammad Chaudhry and comprising Justice Ijaz Ahmed Chaudhry and Justice Gulzar Ahmed asked Attorney General for Pakistan (AGP) Munir A Malik to satisfy the court on a raise in sales tax on CNG.
The bench also sought details of GST collected on Petroleum/CNG from June 13 to July 01, 2013 from the Federation. During proceedings, the bench questioned why the public would pay an additional 9 percent sales tax on CNG, observing that there should be no discrimination between consumers.
The AGP responded that companies would pay an additional 9 percent GST; to which the Chief Justice contended that this would be passed onto consumers of CNG. He further remarked that CNG consumers would be paying 26 percent tax while the maximum rate of GST is 17 percent. Justice Ijaz Ahmed Chaudhry remarked that instead of controlling billions of rupees of corruption the government was increasing the burden on the people with taxes. "If national kitty is empty then it does not mean that the people should be burdened," Justice Ijaz Ahmed said. The hearing of matter was adjourned till July 24.
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