TERENCE J SIGAMONY

ISLAMABAD: The Supreme Court Thursday granted two days time to the federal government to reconsider rationalization of petrol prices and also provide three months breakup of petroleum prices.

A three-member bench comprising Chief Justice Mian Saqib Nisar, Justice Umar Ata Bandial and Justice Ijazul Ahsan was hearing a suo motu case pertaining to continuous surge in the prices of petroleum products.

During the hearing, the Chief Justice made it clear that tax on mobile cards was not suspended for 15 days, adding the order was for the an indefinite period on mobile cards.

Deputy Attorney General Mirza Nasar Ahmed representing the Ministry of Petroleum said the petroleum prices were increased because of two factors, ie, increase in oil price in international market and the depreciation of Pak rupee. He said it is expected that the price of oil in international market would rise further from $80 per barrel to $90 per barrel in coming days.

The court also directed the concerned stakeholders to find a solution to ease the burden on the common man.

Questioning reasons behind the increasing petroleum prices, the Chief Justice sought justification of recent Rs7.5 hike in the price of petrol. He said tax will be reduced on petroleum products.

An official of the Federal Board of Revenue (FBR) said that sale tax on oil is charged worldwide, adding that in Pakistan it is Rs24.81, which is the lowest, while in India it is Rs59.47 and in Germany it is Rs127.4.

The Chief Justice remarked, “Germany is providing several other facilities to its public and if you compare yourself with it provide those facilities to your people as well.”

Attorney General for Pakistan Khalid Jawed said there is a possibility that there could be some reduction in petrol price, adding that historically it has been happening when the price of the oil goes up, the sales tax on it goes down.

Justice Umar Ata Bandial noted that levying of customs duty and sales tax on petroleum products is equated to indirect taxation. He said it was unfair policy.

The Chief Justice noted that in such a situation, the policymakers should realize and take care of the people, instead of leaving them mercilessly in the hot waters.

The Chief Justice noted if petroleum prices are increasing, there is need for adjusting the taxation so that the public could be saved from bearing the burden.

Justice Ijazul Ahsan noted that there were over Rs30 per liter tax and other duties on the petroleum products. The Chief Justice inquired what the justification of customs duty and sales tax on the petroleum products was? He said tax should be imposed on those who have been given exemption. He said the best way to collect the revenue is imposition of direct taxes.

Meanwhile, the attorney general sought a day’s time to tackle the issue of increasing petroleum prices, saying the federal government was needed to be taken on board over the issue.

He said at least a day time was required to the concerned authorities to meet and ponder over the issue and consequently apprise the court.

He said cut in sales tax was possible to some extent. Justice Umar Ata Bandial opined that instead of caretaker government, the FBR and Petroleum Ministry could give better opinion how the prices of petroleum could be reduced and controlled.

The attorney general expressed satisfaction over the opinion of Justice Umar Ata Bandial, saying that corporate revenue has also to be protected.