LAHORE: Lahore High Court (LHC) has adjourned a case against imposition of 50 percent sales tax on petroleum products and import of low quality petrol till December 9, 2016.
According to the details, Justice Mamoon Ur Resheed Sheikh heard the case in which Deputy Attorney General Nasir Ahemd while submitting a reply on the behalf of Petroleum secretary argued that government is authorised to impose extra sales tax, adding that 50 percent extra tax has been imposed by Oil and Gas Regularity Authority (OGRA).
On the other side, counsel for appellant argued before the court that Government of Pakistan was collecting 50 percent extra sales taxes on petroleum products through administrative order that is illegal.
He further said that government cannot impose taxes without the approval of federal cabinet and Parliament, adding that that the government was also importing low quality oil from different countries.
Meanwhile, LHC Justice Abid Aziz Sheikh issued notice to federal government, Government of Punjab and Federal Board of Revenue (FBR) in a case against Punjab Infrastructure Development Surcharge. LHC directed the parties to file their replies by November 7, 2016.
Justice Abid Aziz Shiekh heard the case filed by the Magna and six other companies. The counsel for appellants argued Punjab government has no authority to impose infrastructure development surcharge.
Only federal government can impose infrastructure development surcharge under the Constitution of Pakistan, he said, adding that surcharge has been impose illegally
He appealed before the court to restrain the government from collecting infrastructure development surcharge from companies.
