At the outset of proceedings, Malik Shakeelur Rehman, the counsel for Federal Board of Revenue (FBR), submitted a report in pursuance of the court orders, arguing that CNG station owners had paid Rs 4,091.9 million in tax in the last three years. The report stated that Rs 1,008.9 million income tax was paid in 2009, Rs 1,427.4 million in 2010 and Rs 1,655.6 million in 2011.
Salman Akram Raja, the counsel for Ogra, informed the bench that the Federal Cabinet had yet to approve new CNG pricing formula proposed by Ogra. CNG Association Chairman Ghayyas Paracha alleged that Ogra was trying to pitch the association against the public and maintained that CNG stations purchased CNG from the government at a rate which was higher than offered to other sectors. He contended that CNG station owners were facing massive losses due to a massive cut in CNG prices.
Ogra had earlier withdrawn a memorandum of understanding (MoU) between CNG and the government and cut prices of CNG per kg by Rs 31. CNG owners went on strike in protest and urged the court to direct Ogra to revisit the pricing formula. The court declined saying that it was only concerned with the procedural illegality and would not determine the price as it was not court''s prerogative.
Justice Khawaja remarked that the court was aware of the actual operating costs of CNG station owners and observed that they had earned a profit of Rs 31 per kg for four years under the rubric of operating costs. Justice Khawaja further observed that the court would only examine the issue of transparency in procedure adopted for price fixation and added that Ogra had not undertaken due diligence in the matter of Tauqeer Sadiq''s appointment case. The hearing was adjourned till December 17.