Pakistan

Gas surcharge: SC accepts govt’s petition against declaring tax illegal

Govt says it is facing difficulties over refund

Our Correspondent November 18, 2014

ISLAMABAD:

The Supreme Court on Monday accepted government’s review plea against its judgment to declare gas surcharge tax as illegal.

Submitting the review petition against its August 22, 2014 judgment against Gas Infrastructure Development Cess, the federal government informed the Supreme Court that it is facing immense difficulties over the refund of Rs80 billion, which was collected under GIDC, on the direction of Peshawar High Court.

“Under GIDC Act a considerable amount of money, totaling about Rs80 billion has been collected which was ordered by the Peshawar High Court to be refunded to the payees,” said the government in its review petition, filed by Additional Attorney General Waqar Rana.

The government also contended that in view of the nature of GIDC and applicable legal principles, the money already collected under GIDC Act is not required to be refunded.

The three judge bench of the apex court, headed by chief justice Nasir ul Mulk directed the federal government to file a separate plea regarding this matter. The bench, however accepted the government’s review petition for regular hearing against its August 22 judgment, wherein GIDC is declared as fee and not a tax.

“The Cess could not have been introduced through a money bill under Article 73 of the Constitution - the same was, therefore, not validly levied in accordance with the Constitution,” the judgment said.

Appearing before the bench, Attorney General for Pakistan (AGP) Salman Aslam Butt urged the court to review its earlier order in the current matter arguing that the government imposed the GIDC for gas infrastructure development.

The AGP also states that Iran- Gas pipeline project has not been stopped due to the shortage of fund.

After hearing the arguments of the AGP, the bench issued notices to all the respondents and adjourned hearing of the case for an indefinite period.

Published in The Express Tribune, November 18^th, 2014.