ISLAMABAD: The Supreme Court on Thursday directed that the stakeholders, as well as relevant experts, should chalk out a mechanism to help reduce different taxes being charged over the petroleum products. The three-member bench of the apex court, headed by Chief Justice Mian Saqib Nisar, heard a suo moto case of hike in the prices of petroleum products.
During the course of hearing, the chief justice asked why the price of petrol has been increased by Rs7 per liter after the court had taken notice of the hike. The chief justice said the state is responsible for providing relief to the masses instead of burdening them with taxes. The Attorney General for Pakistan (AGP) Khalid Javed told the court that the prices had been jacked up following an increase in the prices of petroleum products on the international market.
The chief justice, however, observed that petrol is the basic commodity used by the public and its prices should not be increased. “Instead of burdening the public, the government should levy sales tax on other products to meet the losses,” he observed. “If the authority concerned sits and deliberates on the issue seriously, the issue can be resolved,” the chief justice said, adding: “The stakeholders as well as experts should deliberate on how taxes on petroleum products could be reduced.”
Justice Umer Ata Bandyal observed that although the indirect taxes are an easy source of revenue collection, the practice indicated failure of the tax department. The chief justice said the government should justify Rs7 increase in the petrol price adding the court will seek the assistance of the neutral experts. The attorney general sought time until today (Friday) requesting the court to let the relevant authorities meet and deliberate on the issue and then inform the court as to what could be done to reduce taxes on the petroleum products. The court accepted the AGP’s request and adjourned the hearing until Friday (today). Earlier, details of different taxes being charged on petroleum products were submitted to the court in pursuance of its direction.
Meanwhile, in another suo motu case pertaining to excessive tax deductions on prepaid calling cards, the three-member bench of the apex court, headed by Chief Justice Mian Saqib Nisar, directed the government to suspend tax on mobile cards until further notice. Taking notice of the excessive tax cuts on the prepaid cards, the apex court sought replies from the telecom companies and the attorney general for Pakistan. “The law for withholding taxes appears to be imperfect,” the top judge remarked. “Withholding taxes cannot be levied on a labourer who earns Rs100 a day. How can we collect withholding taxes from daily wage earners?” he asked.
