The Supreme Court on Thursday sought a clarification from Federal Board of Revenue (FBR) to explain under which provision of law an additional tax was being charged from Compressed Natural Gas (CNG) sector. A three-judge bench led by Chief Justice Iftikhar Muhammad Chaudhry resumed the hearing of a review petition filed against the apex court''s verdict over the imposition of tax on CNG through a declaration.
During hearing, the court, decided to club the current matter with increase in petroleum products price case. Appearing before the bench, the Attorney General for Pakistan (AGP) argued that 17 percent Sales Tax had already been charged on CNG but after compressing the gas, a value-added tax of 9 percent was charged.
To which, Chief Justice Chaudhry remarked that a product could not be taxed twice, saying the court would not buy the argument that after compression of gas CNG a further tax would be charged. Member legal FBR apprised the bench that the prices of natural gas and compressed gas were totally different. The Chief Justice observed that the prices of natural gas and compressed gas were same in 2007, saying the court never against the imposition of tax and wanted to broaden the tax base, but it should be within the ambit of law. The hearing of case was adjourned till August 22.