ISLAMABAD: The Supreme Court of Pakistan on Tuesday announced its verdict in a case regarding load shedding and Compressed Natural Gas (CNG) prices and declared collection of additional 9 percent taxes on CNG as unlawful.
In its verdict, the apex court said that the Oil and Gas Regulatory Authority (OGRA) cannot collect additional taxes other than 16 to 17 percent General Sales Tax.
The apex court directed the OGRA to fix gas prices in accordance with international market. It further directed the OGRA to maintain subsidy on fertilizer sector and ensure supply of fertilizer to farmers on subsidized rates.
The apex also directed the OGRA to deposit extra collections with Federal Bureau of Revenue (FBR) within three months’ time. The court also said process of issuing CNG licenses was not transparent.
Moreover, the court said the National Electric Power Regulatory Authority (NEPRA) had failed in delivering its constitutional obligations and directed to maintain subsidy on electricity.
