The Lahore High Court on Tuesday sought replies from the federal government, Oil and Gas Regulatory Authority (Ogra) and others by September 22 in a petition challenging the levy of sales tax on petroleum products without an approval of the Cabinet. Earlier, Azhar Siddique advocate arguing on behalf of the petitioner said the government on July 31, 2017, increased the prices of petroleum products in an illegal manner.

The lawyer said when the prices were increased by levying taxes up to 40 percent, the federal Cabinet was not intact following disqualification of former prime minister Nawaz Sharif by the Supreme Court. He pointed out that although the government had kept the prices unchanged but imposed further 6.5 percent and 3 percent General Sales Tax (GST) on High Speed Diesel (HSD) and petrol, respectively.

The counsel said the government illegally collected billions of rupees from the public under the head of GST, which could not be allowed as the same was the property of public at large. He therefore prayed to the court to set aside the notification regarding levy of GST. He also urged the court to direct punitive action against the authorities responsible for this 'illegal' act.

Copyright Business Recorder, 2017