ISLAMABAD: The Supreme Court of Pakistan on Friday ordered federal government to withdraw additional General Sales Tax (GST) on petroleum products, declaring the tax collection from June 13 illegal.
A three-member bench headed by the Chief Justice Iftikhar Muhammad Chaudhry delivered its short ruling in a case pertaining to imposition of GST on petroleum prices without parliament’s prior approval.
In its verdict, apex the court declared null and void an obsolete act of 1931, under which the government collected the levy, saying that the act is against Article 77 of the Constitution.
“The government is not authorized to impose the GST through a declaration and without the approval of Finance Bill 2013-14,” the ruling said.
It said that nine percent additional tax on CNG is also illegal under Article 77 of the Constitution.
The court said that the collected money is returnable and the government should device a mechanism to reimburse it to the consumers and besides submitting the amount to the national exchequer.
A detailed verdict and reasons would be issued later.