LAHORE: The Lahore High Court (LHC) has sought reply from the federal government, Oil and Gas Regulatory Authority (OGRA) and Ministry of Petroleum in a case against increasing sales tax on petroleum products.
Justice Mamoonur Rasheed heard the case in which the appellants’ counsel argued that the benefits of decreasing oil prices in international market were not properly being passed on to the general public by the government. He said that state collecting 50 percent sales tax instead of 17 percent that is illegal adding more, government collecting indirect taxes from public.
On one side, the government announced a small decrease in the prices, but in the meantime rate of sales tax was increased on petroleum products, he added. He also pleaded the court to declare the increase in sales tax as null and void.
After hearing the arguments, the court issued notice the federal government, OGRA and Ministry of Petroleum seeking reply of the case until October 20.
It is pertinent to mentioned here that LHC already sent many notices to the government, ministry of petroleum and Oil and Gas Regularity Authority but they did not submit answer.
