LAHORE: The Lahore High Court has given last opportunity to Finance Ministry for filing a reply on a petition challenging imposition of sales tax on petroleum products.
Justice Ayesha A Malik heard the petition filed by opposition leader in Punjab Assembly Mian Mehmood ur Rashid. Earlier, petitioner’s counsel Shiraz Zaka arguing before the court submitted that the federal government could not impose sales tax on petroleum products without approval of the parliament, as per Article-77 of the Constitution.
However, 17 percent sales tax was being received on petroleum products despite the fact that the no approval had been sought from the parliament for the purpose, he added. Referring to a recent judgement, the counsel said that the Apex court delineated the principle that federal government could not issue notification without the approval of parliament. He requested the court to set aside the sales tax on petroleum products being unconstitutional.
The Law ministry through a reply submitted that the government had powers to impose any tax. But, the court was appraised that the Finance ministry had not yet filed a reply. At this, the court gave last opportunity to Finance ministry for filing reply and adjourned the hearing till December 1.
