ISLAMABAD: The Supreme Court (SC) on Wednesday sought an explanation from the relevant departments over the imposition of taxes on petroleum products, observing that taxes are levied whenever relief has to be provided to the public.
During a hearing, the CJP remarked that prices of petroleum products in Pakistan seldom go down when there is a decrease in the international market, as the government keeps imposing taxes.
Since Additional Attorney General Nasar was also present in the court, Justice Ijazul Ahsan questioned him on the type of taxes applicable to petroleum products and price of petroleum in the international market.
The additional attorney general told the court sales taxes on petroleum products in Pakistan are lowest in the region, adding that India levied 27 per cent taxes on its petroleum products. To this, the CJP remarked that taxes between India and Pakistan was as incomparable like the information technology sectors of both the countries was.
The CJP then sought an explanation over the imposition of taxes on petroleum products from relevant departments, adjourning the hearing for a week.
Following the announcement of the budget for the fiscal year 2018-19, the government recommended an increase of nearly 200 per cent in petroleum levy.
Under the Finance Bill 2018, tax on diesel, petroleum, crude oil and high-octane fuel would be increased from Rs10 per litre to Rs30. The same increase would be imposed on the levy of light speed diesel and gasoline, while the levy on local liquefied petroleum gas could go up by 328 per cent.
