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CJP Takes Suo Motu Notice of Heavy Taxes on POL Products

Islamabad (May 08, 2018): The Chief Justice of Pakistan Mian Saqib Nisar has taken the notice of continuous increase in the price of petroleum products particularly raise in taxes on Tuesday.

Taking the notice of raise in petroleum prices Chief Justice has constituted three-member bench headed by him and will hear the case on Sunday, May 13.

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The notices for appearing before the apex court have been issued to attorney general, petroleum ministry and Federal Board of Revenue (FBR).

Earlier, a bench headed by Chief Justice Mian Saqib Nisar while hearing of the suo motu notice of high levy being charged on mobile phone cards in the country the Supreme Court summoned reply from provinces, mobile companies and Federal Board of Revenue over sales tax and service charges cut on mobile phone cards.

During the proceedings, Attorney General told court that the consumers are paying 42 percent tax, including 19.5 percent FED, 12.7 percent withholding tax (WHT) and 10 percent service/ maintenance charges on every Rs.100 card.The CJP asked, “How WHT is being taken over the use of mobile phone? The WHT should be explained in the court.” “WHT is not received from government and diplomats,” Attorney General told court.

“How will those who do not pay the taxes take it back? Why WHT has been imposed on those people who are not eligible to pay tax? Only that person will pay WHT who is entitled to give tax,” remarked the Chief Justice.

“Why service charges are received?” asked Justice Ijazul Hassan. “The companies can better explain this,” replied the Attorney General.

On May 01, the petroleum prices of various petroleum products for May 2018 have been reshuffled and increased the prices of petrol and diesel.

The finance ministry has given approval increase of Rs 1.70 per litre in price of petrol, Rs 2.31 per liter high speed diesel, Rs 3.41 per litre superior kerosene oil (SKO) and Rs 3.55 per litre  increase in the price of light diesel oil (LDO).

Related News:

POL Prices For the Month of May Raised