Daily Times

LAHORE: Lahore High Court (LHC) Justice Mamoon Rashid Sheikh on Friday expressed dismay over non-filing of reply to a petition challenging the federal government’s decision of imposing 17 percent general sales tax (GST) on petroleum products and remarked that warrants for the arrest of petroleum secretary could be issued if order was not complied till the next date of hearing.

During the hearing on Friday, a deputy attorney general sought more time for filing reply on behalf of the government. He said that the secretary was abroad and hence reply could not be submitted. The judge directed that if the secretary did not appear with detailed reply till October 20, his arrest warrants could be issued.

Earlier, the judge on August 31 had given last chance to the federation petroleum secretary, Oil and Gas Regulatory Authority (OGRA), Economic Coordination Council (ECC) and the Ministry of Finance for filing of reply.

Judicial Activism Panel Chairman Muhammad Azhar Siddique moved the petition. He submitted that this petition was pending since April and so far the LHC had directed the government more than eight times to file comments and reply. As the federal government had no answer for levying more than 17% sales tax, it was avoiding the court order, which was against the constitution and tantamount to shifting the burden on poor masses, he added.

He said that the federal government’s charging of more than 50% GST on diesel in the past and 28% GST for this month was illegal, as prices were not decreased in comparison with the international market.

He said that the POL prices decreased from $50.50 to $43 on July 28, 2016, but the prices in Pakistan were not decreased accordingly. He said that this unjust increase in addition to already prevailing tax on petroleum products by the government was totally unconstitutional and illegal. He said that present increase in GST on petroleum products also violated the Supreme Court rulings. He argued that so far the federal government has illegally and in violation of Article 3, 4, 5, 9, 14, 23 and 25 of the Constitution collected Rs 661 billion taxes and duties on petroleum products, including more than 50% sales tax on diesel.