The Federal Constitutional Court (FCC) has received two constitutional challenges against the imposition of a huge oil tax and the increase in the prices of petroleum products. The FCC Registrar has assigned numbers to the petitions. In the petition, filed by JI chief Hafiz Naeemur Rehman, the FCC has been requested to issue directions to set up an independent, expert-assisted mechanism or commission to examine the constitutional, fiscal, economic and federal implications of the current petroleum tax structure. The government announced an oil and carbon tax under an ironclad commitment with the International Monetary Fund (IMF). Petroleum tax on petrol currently stands at Rs 117.41. per liter while the duty on HSD is Rs 42.60. Likewise, the FCC has also received a petition filed by lawyer Zulfikar Ahmed Bhutta on May 1. The petitioner asked the FCC to order the government to withdraw the recent increase in the prices of petroleum products. Both petitions were filed directly with the FCC pursuant to Article 175E of the Constitution. Interestingly, the FCC Registrar’s Office raised no objections to any of the petitions. The court heard the petitions weeks after they were filed. The FCC was established by the current regime through the 27th Amendment to the Constitution. In the context of Pakistan, an oil tax is a federal tax levied on petroleum products such as gasoline (motor spirit), high speed diesel (HSD), kerosene and light diesel oil. It is one of the government’s main sources of non-tax revenue. The petroleum tax is a fixed tax per litres, which the state collects from the sale of fuel. In contrast to sales tax, which is percentage-based, the oil tax is a fixed amount per unit. It is imposed under federal laws such as the Petroleum Products (Petroleum Levy) Ordinance, 1961, and subsequent Finance Acts. The federal government has the power to adjust it through Finance Acts and Statutory Regulatory Orders (SROs).
FCC entertains POL charge, tariff pleas
