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Home Breaking News

FBR moves for review of verdict on fuel levy

byCustoms Today Report
08/01/2014
in Breaking News, Islamabad, Latest News
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ISLAMABAD: The Federal Board of Revenue (FBR) moved a petition in the Supreme Court, seeking review of its Dec 10, 2013, verdict against the government’s attempt to validate the collection of general sales tax (GST) on petroleum products and compressed natural gas (CNG) since July 1, 2007.

A bench headed by former chief justice Iftikhar Muhammad Chaudhry had struck down Section 3(8) of the General Sales Act, 1990, inserted by the government through the Finance Act of 2013 for protecting the sales tax collected since 2007 under the Sales Tax (Special Procedure) Rules, 2007.

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The court ruled that 9 percent additional tax on CNG should not be charged except for the rate fixed under Section 3(1) of the Sales Tax Act. The court had also ordered the Ogra to issue a revised notification and recover 16pc sales tax already paid by the consumers within three months.

The FBR filed the review petition through Advocate Malik Shakeelur Rehman Khan, pleading review the verdict. The petition was taken up by a three-judge bench headed by Justice Jawwad S Khawaja that decided to consider the issue next week.

The FBR argued that the court had not mentioned any reason explaining how Section 3(8) was contrary to the law and the constitution in its verdict. The petition said the verdict appeared to be based on a presumption that 9pc levy purportedly was an additional tax. The judgment failed to consider the explanation to the section and therefore should be reconsidered.

It said the court had annulled the vires of Section 3(8) of the act merely on the ground that a June 21, 2013, directive of the court had not been complied with.

 

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