ISLAMABAD – Against increase in the General Sales Tax (GST) on all petroleum products by 10 percent announced on January 31, 2015, the apex court has been moved, under Article 184(3) of the Constitution, with the pray to early restrain the federal government from collecting extra amount with GST until the ruling on the petition.
The petitioner made the Centre through secretary Ministry of Law and Justice and chairman Oil and Gas Regulatory Authority (Ogra) as respondents. Shahid Orakzai, the petitioner, also prayed the court to declare the increase in Sales Tax on petroleum products unauthorised under the law and direct the Ogra to re-evaluate the price of petroleum products by the standard GST.
Orakzai questioned whether a tax imposed by a federal law could be increased without amending the law? And whether, the rate/percentage of GST can be increased specifically for a particular group of products.
Firstly, the federation did not move a Money Bill in the National Assembly as required/emphasized by Article 73, wherein clause (2)(a) provides for ‘imposition, abolition, remission, alteration or regulation or any tax. ’ The petition said that no tax could be imposed, abolished, remitted, altered or regulated without a Money Bill. Secondly, the GST under the law should be uniform sales tax.
