ISLAMABAD: Chief Justice of Pakistan (CJP) Mian Saqib Nisar on Thursday expressed concern over the taxes being charged over petroleum products remarking that the huge difference between consumer price and price of imported oil was unjustifiable and bringing misery to the common man.
The CJP expressed this concern while a three-member bench of the Supreme Court (SC) was hearing a case related to the same.
Justice Saqib Nisar asked for justification for the most recent increase of petroleum tax to Rs30 per litre.
“Why are petroleum prices rising? Why are customs duty and sales tax being levied on petroleum products? We want experts’ opinion on the [continuous price hikes],” the chief justice remarked.
Justice Ijazul Ahsan observed that it was an unfair policy, while Justice Umar Ata Bandial remarked that it equated to indirect taxation.
The deputy attorney general informed the bench that the surge in petroleum prices was a result of rising global crude oil prices and the weakness in rupee. Furthermore, the CJP stated that if petroleum prices were increasing then there is a need to adjust taxation as well.
The top judge directed the concerned officials to provide a breakup of petroleum prices from the past three months.
The court then adjourned hearing on the case till July 8.
Effective July 1, additional taxes and duties to an amount of Rs70 billion have been imposed for the month of July. Consumers would pay Rs37.63 per litre on petrol, Rs17.19 on light diesel, 22.93 on kerosene and 52.24 on high-speed diesel. Good and Services Tax (GST) imposition on light diesel is Rs11.76 per litre, while Rs28.23 per litre is to be paid on high-speed diesel and Rs17.46 on petrol.
