How can FBR collect sales tax without passage of finance bill: CJP
ISLAMABAD: Chief Justice Iftikhar Muhammad Chaudhry Friday remarked that Federal Board of Revenue could not collect ‘proposed increase’ in general sales tax on petroleum products unless...
June 14, 2013
The three-member bench of the apex court headed by Chief Justice Iftikhar Muhammad Chaudhry including Justice Gulzar Ahmed and Justice Ejaz Khan heard the suo moto notice case on recent hike of petroleum prices.
The court also sought copy of the notification of the 1 per cent increase in sales tax and directed the federal government to review the Interim Tax Recovery Act 1937.
The Chief Justice remarked that before the approval of finance bill by the parliament, the said tax couldn’t be imposed on petroleum products.
During the course of proceedings, the FBR officials informed the court that implementation of 1 per cent increase in sales tax would add Rs30 billion to the national exchequer.
The CJP directed Attorney General (AG) Munir A. Malik to submit the copy of notification for the increase of petroleum products price.
The AG informed the court that the declaration was like a proposal based on Interim Sales Tax Act of 1937.
The Chief Justice remarked that how could FBR issue the notification to collect tax on a declaration without approval of the Parliament and signature of the President.
The court sought that how much money the FBR had minted from the masses in the last two days.
The AG said the government could collect tax unless the government nullified the Interim Sales Tax Act 1937 as there was no immediate way to collect sales tax.
The court also tasked AG with information about the collection of existing levy tax.
Later, the court was adjourned till June 18. (APP)
