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Wednesday, July 03, 2013
FBR decides to challenge SC verdict on GSTHasnaat Malik
ISLAMABAD: The Federal Bureau of Revenue (FBR) has decided to challenge the Supreme Court’s June 21 judgement that declared imposition of general sales tax (GST) on petroleum prices without parliament’s approval as null and void, and unconstitutional. Sources told Daily Times that the attorney general of Pakistan’s office has recommended the FBR file a review petition against the court’s June 21 decision, wherein it was stated that the imposition and collection of additional one percent GST and increase in prices of petroleum products without the approval of parliament is unconstitutional and directed the government to withdraw its declaration in this regard from June 13.
It has been learnt that the government’s top law officer fears that the Supreme Court might issue a contempt notice to the authorities concerned for not depositing with the SC registrar the excess amount received through the increase in GST from 16% to 17% by a simple declaration from June 13 to June 21. “Excess amount equal to 1% (17%-16%) of the sales tax recovered on the petroleum products/CNG or any other taxable supplies w.e.f. 13.06.2013 onwards, thus is refundable to consumers,” the court had observed in its short order.
Courtesy www.dailytimes.com.pk