IHC to hear petition against increased GST on POL products

ISLAMABAD: Justice Amir Farooq of the Islamabad High Court (IHC) would hear a writ petition here on Wednesday (today) where a petitioner has challenged the federal government SRO for increasing GST on petroleum products from 17 to 22 percent.
Petitioner Muhammad Mazhar Qayyum has nominated the federation of Pakistan through the Ministry of Finance and Economic Affairs Division secretary, Federal Board of Revenue (FBR) and Oil & Gas Regulatory Authority (Ogra) chairman as respondents.
The petitioner has maintained that he is associated with goods forwarding business in Islamabad and increase in the GST affects his business. The federal government on December 30, 2014, through an SRO announced imposition of 22 percent General Sales Tax (GST) on petroleum products. The forcible imposition of 5 percent GST in addition to already prevailing 17 percent on petroleum products by the respondents is totally unconstitutional and illegal, he said.
The petitioner contended that increase in GST or any other tax could only be levied under Article 77 of the Constitution that says, “No Tax shall be levied for the purpose of the Federation except by or under the authority of Act of Majlis-e-Shoora/ Parliament. The petitioner further contended that taxation through any executive order is unconstitutional in view of Article 162. “The present move of Federation to increase GST on petroleum products also violates the Supreme Court rulings. If the instant illegal act of the respondent is not set-aside by the court, then the petitioner and public at large would suffer irreparable economic and financial blow, the petitioner said. He has prayed to the court to declare the December 30, 2014 increase as illegal and unconstitutional.