Summary FBR increased rates of General Sales Tax from 16% to 17% without approval of the Parliament.
ISLAMABAD (Dunya News) – The Supreme Court of Pakistan on Thursday reserved its judgement in a case pertaining to increase in general sales tax and petroleum prices.
A three-judge bench headed by Chief Justice Iftikhar Muhammad Chaudhry initiated hearing of a suo-moto notice on increase in petroleum prices as a consequence of the proposed 17 percent GST.
During case proceeding, Chief Justice Iftikhar Muhammad Chaudhry remarked that 1 percent increase in GST led to 15 percent surge in prices.
He said that court is not stopping the government from imposing the tax but it should should work within constitutional limits.
The way FBR imposed 1% increase in the GST is unacceptable, CJP added.
He remarked that if ‘interim’ procedure of tax imposition allowed once, parliament’s role will remain no more affective.
On the other hand, Ogra’s counsel Salman Akram Raja told court that government member cannot oppose budget recommendations under article 63 (A) of the Constitution.
He said that authorities were sure that GST hike will be approved, thus, prices were increased immediately.
The verdict will be announced on Friday.
