SCP suspends carbon surcharge on petroleum products

The Supreme Court of Pakistan (SCP) has given interim verdict to suspend the enforcement of the carbon surcharge tax. The bench headed by Chief Justice of Pakistan Justice Iftikhar Muhammad Chaudhry heard the petitions filed against the raise in petroleum prices. The apex court directed Oil and Gas Regulatory Authority (OGRA) to issue notification regarding suspending the carbon tax on petroleum products. The court while hearing the petitions commented that the purpose of the carbon surcharge is to lower environmental pollution; but immediate imposition of this tax has no justification as neither ministry of environment has recommended it nor ministry of petroleum presented any justification of the said tax in the court. After this notification petroleum prices are expected to return to pre July 1 level.