Summary Govt has not right to impose additional GST without parliament's approval, says SC.
ISLAMABAD (Web Desk) – The Supreme Court of Pakistan on Friday ordered the government to withdraw imposition of additional sales tax on Petroleum products.
The apex court announced its short order on a suo moto notice against imposition of additional 1% GST and increase in prices of petroleum products.
A three member bench of the Supreme Court headed by Chief Justice Iftikhar Mohammad Chaudhry had reserved its judgment in the case yesterday (Thursday).
The apex court declared that 1931 Act regarding imposition of tax before passage of budget is violation of article 77 of the Constitution.
The court observed that the government has no authority to collect additional GST without parliament s approval.
The court also declared that tax collection prior to passage of Financial Bill 2013 from June 13 is illegal and ordered government to deposit the additionally collected amount in the state treasury through SC Registrar.
The court also ordered that 9% GST on CNG is illegal.
