SC questions price hike without budget approval

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Expressing its reservations on the increase ordered in the general sales tax which has resulted in a price-hike of consumer goods and petroleum products without the approval of the finance bill by Parliament, the Supreme Court on Friday issued summons for officials in the Federal Board of Revenue.

The bench, headed by Chief Justice Iftikhar Muhammad Chaudhry, was hearing a suo motu notice of the increase in prices of petroleum products ordered on the basis of announcements made by Finance Minister Ishaq Dar in his budget speech.

During the hearing, the chief justice questioned as to how the increase in GST proposed in the finance bill could be implemented without its adoption by Parliament.

Chief Justice Iftikhar added that the court had reservations on the collection of the increased GST and that the additional tax collected in this respect should be returned to the public.

The court moreover directed the authorities to produce the notification for implementing the increased GST.

Responding to which, the government’s top law officer and Attorney General Munir A. Malik said he did not have a copy of the document.

Following which, the bench summoned FBR officials along with the notification authorising the implementation of the proposed increase in GST.

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