SC moved against raise in GST on petroleum products

ISLAMABAD: A petition was filed with the Supreme Court on Monday, praying for declaring the increase in Sales Tax on petroleum products unauthorized under the law.
Petitioner Shahid Orakzai has filed the petition under Article 184 (3) of the Constitution, making Law Secretary and Oil and Gas Regulatory Authority (Ogra) chairman as respondents. He prayed to the apex court to restrain the Federation from collecting extra amount with the GST until ruling is given on the petition and direct Ogra for re-evaluating the prices of all petroleum products exactly by the standard GST.
He contended that the Federation did not move a money bill in the National Assembly as emphasized by Article 73 wherein Clause 2 (a) provides for such a Bill for the imposition, abolition, remission, alteration or regulation of any tax.
No tax can be imposed, abolished, remitted, altered or regulated without a Money Bill. He further submitted that the General Sales Tax, under the law is supposed to be a uniform and consistent sales tax. It applies to all products at a general rate and cannot vary from product to product.
Thus, in the eyes of law, the verbal increase in the GST by the prime minister is thoroughly illegal even though notified by the Federal Board of Revenue, the petitioner submitted. He further contended that the word “General” is used in the Constitution in more than one meaning and is also employed in some articles as the antonym of word “Special”.
“That by the latest increase from 17% to 27%, the sales tax on petroleum products is no more a General Tax but has now become a Special Tax,” the petitioner submitted adding that at this point of time, there is no Act or Majlis-e-Shoora (Parliament) which could impose or levy any Special Sales Tax exclusively on petroleum products.
The petitioner drew the attention of the apex court towards Article 77 of the Constitution which states that No tax shall be levied for the purpose of the Federation except by or under the authority of Parliament.