5% Sales Tax Increase Challenged In Supreme Court

The 5% Increase In Sales Tax Has Been Challenged In Supreme Court.PakistanTribe.Com

The 5% Increase In Sales Tax Has Been Challenged In Supreme Court.PakistanTribe.Com

ISLAMABAD – Government’s increase on sales tax has been challenged in supreme court as it was an extra burden on the consumer to pay 5% extra tax on petroleum products, PakistanTribe reported.

Government of Pakistan had imposed extra sales tax on petroleum products increasing it from 17% to 22% by putting 30% tax  burden on consumer.

All walks of society condemned this increase in sales tax as not much benefits were given to the consumers for decrease in oil prices in international market.

The business community not only rejected the five per cent increase in General Sales Tax (GST) on petroleum products and termed the decision anti-business.

Opposing the government act PTI vice chairman Shah Mehmood Qureshi tweeted

The Islamabad Chamber of Commerce and Industry (ICCI) strongly opposed the 5 per cent increase in GST on petroleum products and said that the decision would entail harmful impact on the economy and bring more problems to the common man.

The increase in tax rate will fetch Rs48 billion on an annual basis, while the government has estimated minimum Rs20 billion additional income in next five months, according to a senior official of the Federal Board of Revenue (FBR).

Naeem Mir – All Pakistan Anjuman-e-Tajiran’s Central General Secretary- said that oil prices at international level have dropped by over 45 percent but the government has not passed on this benefit to the consumers as just 20 percent cut has been announced so far.

“When the rates go upward government makes Ogra responsible for this hike and refuse to interfere but now the authorities are interfering and have become hurdle to facilitate public. It seems that government was reducing the rate of oil due to pressure of PTI sit-ins as the government has now imposed additional levy on petroleum instead of giving full benefit of international oil price cut as the sit-ins are no more continuing,” he said.

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