Additional tax on CNG against the law: SC
Supreme Court ordered has Ogra to fix gas prices in accordance with international market.
(Web Desk) - The Supreme Court has declared collection of additional nine percent tax on Compressed Natural Gas (CNG) is illegal.
The order was issued by a three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry in a case pertaining to the load shedding of electricity, illegally opened CNG stations and the petroleum products’ prices.
The court in its verdict announced that Oil and Gas Regulatory Authority (OGRA) cannot collect additional taxes other than 16 to 17 percent General Sales Tax (GST).
The court has directed OGRA to deposit additional collections with Federal Bureau of Revenue (FBR) within three months.
The court also said process of issuing CNG licenses was not transparent.
The court added that it was responsibility of the government to ensure the welfare of the people in accordance with the Article 30 of The Constitution.
The court said National Electric Power Regulatory Authority (NEPRA) has failed in delivering its constitutional obligations and directed to maintain subsidy on electricity.
