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2009-08-21
* Three-member bench seeks explanation for additional taxes on POL products, increase in POL prices from June 2006 to July 2009
By Masood Rehman
ISLAMABAD: The Supreme Court on Thursday branded additional taxes, such as general sales tax (GST), on petroleum products “unreasonable and illegitimate”, and said the government has not provided an explanation for petroleum taxes and the “ex-refinery price has been silently increased”.
The chief justice made the observation while heading a bench hearing two identical petitions against petroleum prices.
The bench directed the federal government to provide an explanation for additional taxes by September 28 – the date of the next hearing.
The chief justice observed that GST and all other taxes were “quite unwarranted”, making an explanation necessary.
Attorney General Sardar Latif Khosa told the court that government was seriously evolving long-term and short-term policies in light of a report by Justice (r) Rana Bhagwandas. The court directed the attorney general to submit an explanation for the increase in prices of petrol and diesel during the period from June 30, 2006 to July 1, 2009.
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