Opposition Leader in the Upper House Mian Raza Rabbani on Tuesday accused the government of confusing the imposition of two percent additional general sales tax (GST) on petroleum products before the apex court, alleging that the Federal Board of Revenue (FBR) had issued notification in dead of the night but withdrew it in the morning before going to court.
At the outset of Senate proceedings, Rabbani on a point of order said he wanted to submit a privilege motion. He said FBR issued a notification at night for imposing two percent GST on non-registered petrol stations. However, he added, the FBR later informed the Supreme Court on Tuesday that the notification had been withdrawn and also submitted a notification in the court.
He said it was impossible for the consumer to distinguish between unregistered companies which were asked to pay two percent GST and the registered petrol stations.
He objected to the government’s claim that 1931 Act provided the government to collect taxes even before passage of finance bill from parliament.
He said the “1973 constitution overrides the 1931 Act which is a superior legislation which does not allow taxation before legislation”.
Responding to the privilege motion raised by Rabbani, Senate Chairman Nayyar Hussain Bukhari said the matter of legality of the imposition of increased GST from June 13 would be decided by the House Committee on Finance, after which he would decide about the privilege motion of Raza Rabbani on collection of taxes before the passage of Finance Bill, 2013.
Leader of the House Senator Raja Zafarul Haq said the matter of provisional collection of taxes was before the Supreme Court and every matter, even the constitutionality of the legislation done by parliament, was to be ultimately decided by the court.
The Senate chairman said FBR should look into the matter as to why consumers should be affected and general public should be penalised, as it was impossible for them to know beforehand which petrol station was registered.
However, Rabbani did not agree to the chairman’s ruling and opted to stage a token walkout from the House. However, the opposition Senators returned to the House after Senator Mushahidullah Khan went out and urged them to return.
