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Updated 22 Jun, 2018 09:21am

Officials asked to justify taxes on petroleum products

KARACHI: The Supreme Court on Thursday directed the secretaries of petroleum and energy and power, chairman of Federal Board of Revenue (FBR) and others to appear before it on Friday along with six-month record, including bidding for import of crude oil, in a case against taxes on petroleum products.

Expressing displeasure over the briefing by the deputy managing director of the Pakistan State Oil (PSO), Chief Justice of Pakistan (CJP) Mian Saqib Nisar observed that the court was not satisfied with the process of the import of oil and that the authorities concerned must justify taxes on petroleum products.

Take a look: Govt should explain tax hikes on petrol despite falling global prices: SC

A three-judge bench of the apex court headed by the CJP was hearing the suo motu proceeding about various taxes imposed on petroleum products at the Supr­eme Court’s Karachi registry.

SC summons authorities concerned with six-month record

PSO Deputy Managing Director Yaqoob Sattar said that crude oil was imported through bidding system and then price of petroleum products was fixed after including surcharge, sale tax, commission of oil marketing companies and dealers.

He further contended that gasoline was acquired at the rate of Rs62.38 per litre from a company which offered the lowest bid and added that 9.8 per cent levy and 3.83pc inland freight equalisation margin were imposed while the share of marketing companies was 2.55pc and 3.35pc commission of dealers.

The CJP said that the court would not allow the authorities to increase the prices of petroleum products without any justification and directed the secretaries of petroleum and energy and power, chairmen of FBR, PSO and Oil and Gas Regulatory Auth­ority and others to turn up on Friday along with six-month record of import, bidding and mechanism of fixing prices.

Published in Dawn, June 22nd, 2018

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