The Islamabad High Court on Wednesday issued notices to the secretary ministry of finance, chairman Federal Board of Revenue (FBR) and chairman Oil and Gas Regulatory Authority (OGRA) in a writ petition challenging 5 percent increase in general sales tax (GST) on petroleum products.
A single-bench of Justice Aamer Farooq heard the petition filed by Muhammad Mazhar Qayyuam through his counsel Advocate Yasir Mehmood Chaudhry challenging the Statutory Regulatory Order (SRO) issued by the federal government on December 30, 2014, under which general sales tax (GST) on petroleum products increased by 5 percent.
During the course of proceeding, the bench admitted the petition for hearing and issued notices to the above-mentioned respondents directing them to file their reply on the matter.
Advocate Yasir Mehmood Chaudhry pleaded before the court that the government increased GST on petroleum products without taking the parliament into confidence as under Article 77 of the constitution the government could not impose any tax or increase GST without the permission of the parliament.
He contended that as per article 162 of the constitution, no tax could be imposed through an executive order. The recent increase in GST on petroleum products was also in violation of the Supreme Court order (PTD1491), he added.
The petitioner prayed before the court to declare the recent increase in GST on petroleum products illegal. Later, the court adjourned proceeding for indefinite time. The petitioner made federation through secretary Ministry of Finance, chairman Federal Board of Revenue (FBR) and chairman Oil and Gas Regulatory Authority (OGRA) respondents in the matter.
