Super charged: GST, TV fee in power bills challenged in PHC

Petition asks court to issue a stay order over taxation till the case<br /> is resolved.

PESHAWAR:

A public interest petition was filed with the Peshawar High Court (PHC) on Monday regarding the collection of general sales tax (GST), television licence (TVL) fee and all other charges that inflate electricity bills. The court was requested to deem the practice illegal and forbid the government from further collection.

The petition was filed by Khalid Ayub, the chairman of Peshawar-based social reformation organisation Karwan, and his counsel Muhammad Zulfiqar Ali. They nominated Peshawar Electric Supply Company (Pesco), the Water and Power Development Authority (Wapda) chairman and secretary, the finance and revenue division secretary and the Federal Board of Revenue (FBR) chairman as respondents.

The petition read, “For the past three months Pesco and Wapda are intentionally issuing impugned, illegal and unjust bills with additional charges of GST and TVL fee to the consumers. The GST has been a part of the billing since 2007-08.”

It questioned how residential facilities are categorised as business units and taxed accordingly. The petition adds that the PHC and Supreme Court (SC) had given many judgements since 2009 which state Khyber-Pakhtunkhwa (K-P) should be given special consideration when it comes to billing because the electricity in K-P is produced through hydel power and not fuel.

“Mosques and seminaries are also being taxed the same way by Wapda and Pesco. What is being sold in mosques and madrassas for which they should be indirectly taxed?” it read.

Bills that kill

Inflated bills have been a long-standing issue in the country. A few days ago, a woman committed suicide after seeing her electricity bill in Bahawalpur, Punjab. Complaints against Pesco’s billing have multiplied over the last few months. There have been litigations in the past against adding additional charges to power bills. PHC declared the much debated fuel adjustment charge as null and void in the province last year but the SC overruled the decision.

According to Zulfiqar Ali, a lawyer, there is no fixed rate for GST in bills whereas Rs35 is fixed for TVL fee. However, under sales and income tax ordinances mosques, hospitals and charities are exempted from this charge.

The petition has asked the court to pursue the matter for the public interest at large and has also asked the court to declare the collection of GST and TVL fee through power bills as against the Constitution.

It should also bar the petition’s nominated respondents from collecting these charges in future and refund the consumers through discounts in future billings. Also, while the petition is being pursued, the PHC should issue a stay order over the taxation, the petitioner further requested.

Published in The Express Tribune, September 30^th, 2014.