SC and taxation

[SSGPA1]

The taxes imposed on petroleum products in Pakistan are unjust and unfair, and in these columns we have roundly criticised the federal government for putting the squeeze on the poor in these already difficult times.

But is the carbon surcharge/tax proposed by the federal government and unanimously approved by the National Assembly as part of the Finance Act, 2009 after 10 days of debate unwarranted? Prima facie a bench of the Supreme Court of Pakistan led by Chief Justice Iftikhar Chaudhry appears to think so, for it has directed the Oil and Gas Regulatory Authority to issue a notification suspending the imposition of the carbon surcharge on petroleum products.

It is important to understand the events leading up to the Supreme Court’s direction. Days after being restored as the chief justice in March, Chief Justice Chaudhry began to look into the government’s controversial policy of imposing a petroleum development levy to harvest money for the federal kitty. That investigation led the Supreme Court to direct the federal government to reduce the prices of petroleum products to ‘reasonable’ levels in May, as a result of which the government reduced prices by a token amount. Perhaps worried that the legal cover for the petroleum development levy was not strong enough to withstand the Supreme Court’s apparent dislike for it, the government sought to address the matter by legally imposing a new tax — a carbon surcharge on petrol, diesel and kerosene of between Rs6 to Rs10.

The surcharge, and this is critical from a legal point of view, has been approved by the National Assembly. Following the unanimous vote approving the Finance Bill, 2009, Sheikh Aftab Ahmed, chief whip of the PML-N, and Riaz Hussain Pirzada, chief whip of the PML-Q, spoke appreciatively of the government’s handling of the budget process and extended their parties’ support for the budget. So, in a very direct way, the Supreme Court has taken on both the executive and parliament and overruled them on a matter of taxation. This is dangerous ground and goes to the heart of the separation of powers and the concept of checks and balances. Stripped to the basics, policymaking is the executive’s domain, legislation is parliament’s and determining legality is the judiciary’s.

In the present case, the arguments made before the court for reducing the price of petroleum products appear to have been largely normative — the poor will suffer, the productive sector will be hit, etc — and not technical/legalistic. While the former are worthy of sympathy and must rightly be supported, the judiciary is not the forum in which they ought to be resolved.

DAWN.COM | Business | SC and taxation

 

[SSGPA1]

CJP should look after his institution and work for the improvement of financial conditions of the judiciary.

This is an unacceptable approach and CJP should stay away from this approach.

People have high hopes from this CJP and SCoP bench and they should only focus on the legal issues.

Meddling in politics will be a disaster for Pakistan.

 

[mcuk2001]

CJP should look after his institution and work for the improvement of financial conditions of the judiciary.

This is an unacceptable approach and CJP should stay away from this approach.

People have high hopes from this CJP and SCoP bench and they should only focus on the legal issues.

Meddling in politics will be a disaster for Pakistan.

why not have a judicial coup, and make CJ the leader of the country?

 

[SSGPA1]

why not have a judicial coup, and make CJ the leader of the country?

who knows, he might have been asked to work towards that goal.

 

[qsaark]

Yaar SSGPA1, tum ko Khuda samjhey, I have no other words for you but to say tum ko aur tum jaisey aur logon ko Khuda samjhey. Do you even have a clue how much this Government and Governments before this one have been making on Petroleum products? Just because it has been so easy to put taxes and this. Do you know that until after 38 years, people of Pakistan are still paying flood surcharge on petroleum products, flood that came in Late East Pakistan. You my dear may belong to a privileged or well-to-do family, but it wont hurt a lot if you bother to think a little about common Pakistanis. Do you know how difficult it has become for those to live their life? No you would not know, because you are not one of them. You own a computer and money and time, and that you are spending only to degrade CJP. The reduction of petroleum price would do no benefit the CJP nor would it benefit people like you who have ample money to spend, it is only for the poor Pakistanis, those who dearly deserve a break. But even this one you have made controversial. And in order to support this you are giving reference of National Assembly. What national assembly? You the supporter of Dictatorship are talking about Assembly? Only because here it is supporting your cause of degrading CJP. Read the following if you could:

Govt earned Rs 1,023 bn from oil sector in eight years

Thursday, July 09, 2009

By Sohail Khan

ISLAMABAD: The government earned a whopping Rs 1,023 billion from the oil industry from 2001-02 to March 2009, while oil refineries and major oil marketing companies made Rs 149.83 billion profit till 2007-08, revealed the findings of the judicial commission on Wednesday.

The Supreme Court had set up a judicial commission, headed by Justice (retd) Bhagwandas, to probe into oil prices and profit earned by the government since 2001. According to the report submitted by the commission before the Supreme Court, the government had generated revenue from the oil industry to the tune of Rs 1,023 billion from 2001-02 to 2008-09 (up to March 2009) inclusive of sales tax, federal excise duty, domestic and import stage tax, customs duty, petroleum development levy (PDL) and income tax.

The oil marketing companies had earned net profit of Rs 73.28 billion from 2001-02 to 2007-08. Among the companies, the Pakistan State Oil (PSO) remained the highest profit earner (Rs 43.35 billion) followed by the Shell Pakistan Limited (Rs 15.27 billion), Chevron Pakistan Limited (Formerly Caltex, Rs 7.74 billion) while the Attock Petroleum Limited earned Rs 6.92 billion as net profit.

A summary of financial results revealed five oil refineries had earned total net profit of Rs 76.55 billion from 2001-02 to 2007-08. Among them, the Pak-Arab Refinery Limited (Parco) remained the highest earner with Rs 38.94 billion profit, followed by the National Refinery Limited (Rs 19.72 billion), Attock Refinery (Rs 9.84 billion), Pakistan Refinery Limited (Rs 7.05 billion) while Bosicor Pakistan Limited earned Rs 1 billion profit from 2004-05 to 2007-08.

In its findings, the commission, while submitting its report to the apex court, proposed designing short-, middle- and long-term strategies for oil pricing and deregulation of prices of HOBC, light diesel and JP1 fuel.

According to the short-term strategy proposed in the findings, the commission suggested the government to take speedy measures for the formation of a committee of oil and energy experts, framing terms of reference for the committee for the medium- and long-term roadmap for an integrated energy policy.

The commission proposed controlled deregulation of IFEM (freight pool) by replacing it with the primary transportation charges to be built in the ex-depot prices.As a first step, the commission suggested that deregulation be carried out under a controlled regime and in the next phase, the primary transportation charges should be built in the oil marketing companies (OMCs) margin.

It also proposed fixing rate in absolute rupee terms per litre as against percentage term for the selling prices of general sales tax, OMCs margin and dealers’ margin.The commission believed once the calculation of these components is changed to absolute rupee rate per litre, the end-selling price of the product will truly reflect the impact of increasing/decreasing trend of oil prices in the international market.

This should redress people’s vital grievances regarding fabulous profits made by the government, OMCs and dealers with increase in the oil price in the international market and not passing on the benefit of reduced oil price to them.

Source: Govt earned Rs 1,023 bn from oil sector in eight years

Don’t the people of Pakistan deserve a little bit from this whole lot of money that is made by the upper class through extracting the blood of these poor. To give a relief to the people of Pakistan is not the job of the CJP, it is the job of those bastards who are looting this country 24 hours a day. Those who are sitting in the assemblies, and in the bureaucracy. It is their damn job to give some relief to the people. But they are not going that. Now if CJP is trying to give some relief to the people of Pakistan, what problem you have? And what he can do? He can only pass a ruling and the thugs can always over-rule it as it happened in the following. Now you are happy? Tum logon ko Khuda samjhey. Ghareeb ki to Khuda bhi nahin sunta.

Presidency moves against, SC order on POL prices

Thursday, July 09, 2009
By Hanif Khalid

RAWALPINID: In a move to neutralise the impact of the Supreme Court order on the price of petroleum products, President Asif Ali Zardari signed an ordinance in the wee hours of Thursday imposing petroleum development levy on petroleum products with immediate effect.

The prices of petrol, diesel, kerosene oil, light speed diesel and HOBC were again increased with effect from July 9. The prices of these items were reduced following the suspension of carbon tax by the Supreme Court.

The petrol price will now be up by Rs10 per litre, diesel by Rs8 per litre, light speed diesel by Rs 3 per litre and HOBC by Rs 14 per litre. Officials continued working till Thursday morning in the ministries of law, petroleum and FBR to finalise the ordinance.

The presidential ordinance would remain effective for 120 days in accordance with the constitution. As The News copy was going to the press at 2:45 am, this correspondent received information that the president has again called the file to review the decision. According to the earlier decision the ordinance was to be effective from Thursday morning. This ordinance, according to an insider, could well pit the presidency against Supreme Court.

Source: http://thenews.jang.com.pk/top_story_detail.asp?Id=23173

 

[SSGPA1]

Just because it has been so easy to put taxes and this. Do you know that until after 38 years, people of Pakistan are still paying flood surcharge on petroleum products, flood that came in Late East Pakistan.

Fine, go and talk to your representatives, get out on street, use available means in democracy to protest but lets not allow SCoP do the same what PA has been doing!

You live in the US so read their history about taxation and protests. Follow democratic means so that democracy can evolve.

Wake up this society who depend on corrupt politicians toresolve their issues. Where is NS?? Why can't he stand up against this price increase???

Why the SCoP is involved in this mess? This is simply not legal for SCoP to dictate such rulings. Parliament is supreme, whether they elect Musharraf or they add a new tax!!

And in order to support this you are giving reference of National Assembly. What national assembly? You the supporter of Dictatorship are talking about Assembly? Only because here it is supporting your cause of degrading CJP.

President Musharraf was no dictator, he was elected by the NA and supported by the same SCP.

Majority of people elected political representatives in Pakistan who claimed to be the champions of democracy. I want to ensure that people try this NA to its limit and after next election, Pakistan recives a better lot.

The only thing CJP can do for Pakistan is to work on pay and benefit structure of Pakistan's judiciary. CJP is no match for the cunning politicians of Pakistan!

 

[SSGPA1]

Don’t the people of Pakistan deserve a little bit from this whole lot of money that is made by the upper class through extracting the blood of these poor. To give a relief to the people of Pakistan is not the job of the CJP, it is the job of those bastards who are looting this country 24 hours a day. Those who are sitting in the assemblies, and in the bureaucracy. It is their damn job to give some relief to the people. But they are not going that. Now if CJP is trying to give some relief to the people of Pakistan, what problem you have? And what he can do? He can only pass a ruling and the thugs can always over-rule it as it happened in the following. Now you are happy?

No I am not happy at all, I have kids and it breaks my heart to see kids suffering in this heat because of power shortage ... my heart goes out to all my poor brothers and sisters who called this misery upon themselves by electing these bast0rds!

How many a times NS and PPPP have had govts. in the past???

Pakistani voters look for politicians who can make unreal claims and fake promises and this is exactly what they got.

Lets hope that we elect better politicians the next time around.

 

[Fracker]

I would say "Thank you CJ for removing the unnecessary taxes".

These taxes don't make sense, when government already earning on oil for no reason. The higher cost electricity was a gift from ex-ppp government. At that time as well, that wouldn't make any sense to buy 1 unit at 8 rupees, while consumer was getting electricity for 3 rupees at that time. This government is also continuing same trend, and pushing more IPPs in. This will increase load on the WAPDA, who haven't received any money in the name of subsidy (apart from we don't know where the income from other power generation resource of WAPDA is going).

Yes, i agree, we have loadshadding, but why our Mr. President didn't sign a deal for cheap electricity from china, where they given pretty good prices, and mean while they could go for other option of getting cheap electricity like wind, waterfalls of northern areas, nuclear etc.

Basically main problem is, we have world biggest parliament, even bigger then US who is 13 times bigger then pakistan. we don't know where our 2+ trillion budget is going, while giving no development work. NS or Zardari, non seems to be loyal to the pakistani people.

Pakistani people seems to have no other option then ANP, MQM, PPP, PML (n+q), or stupid MMA + JUI

 

[Fracker]

Presidency moves against, SC order on POL prices

This guy permanently need to be Shut up []. Can't see people happy for long time..

 

[Skywalker]

This is another wake up call for Pakistani people among tons of others. It looks like people are still sleeping. He is a badmash and only doing to favor himself and the west.

 

[muse]

Just remember that this CJP has subverted democracy and will continue to do this -- the taxation was passed by the Majlis, the legislature - it is the legislature that makes laws, the judiciary does not make laws and it does not have authority to subvert the will of the people expressed by the majlis -- but Pakistanis learn the hard way.

 

[Fracker]

Just remember that this CJP has subverted democracy and will continue to do this -- the taxation was passed by the Majlis, the legislature - it is the legislature that makes laws, the judiciary does not make laws and it does not have authority to subvert the will of the people expressed by the majlis -- but Pakistanis learn the hard way.

I really think, this government now have to go. Enough is enough.. If still someone don't think its enough then go through the progress of this government. You wont see anything other then improving corruption, hiring more jiyals, reducing rupee value, putting KSE at worst situation, re-welcoming IMF, increasing taxes (GST 1% + W.h 5%+income tax 1%), let each industry to do what every they want to do, increasing new candidates, President's foreign trips. , reducing foreigner's interest, increasing gas, electricity, petrol and all basic necessities rate. They have increase more IPPs (who are giving 8 rs/unit to wapda) and rejecting the offer of china for cheap electricity, doing agreement with iran for gas on higher rates, forgetting all promises like, CoD, CJ Restoration, Provincial independent, urgently completing Gawadar etc..

Why the hell we have to face these B******D, come on people get up now :-s. I don't need any democracy, dictatorship was better then this, where atleast they are giving relief to normal civilians.

 

[qsaark]

Just remember that this CJP has subverted democracy and will continue to do this -- the taxation was passed by the Majlis, the legislature - it is the legislature that makes laws, the judiciary does not make laws and it does not have authority to subvert the will of the people expressed by the majlis -- but Pakistanis learn the hard way.

Legislature is not God or is it? If legislature makes laws that do not benefit the common people, than these laws can be and must be challenged. Will of the public! Ha Ha, this is the will of the public to pay so much extra on the petroleum products? Or is this the will of the politicians and bureaucrats to extract even the last drop of blood from the poor Pakistani public.

 

[muse]

Legislature is not God or is it? If legislature makes laws that do not benefit the common people, than these laws can be and must be challenged.

No sir, god is your CJP - he annuls the laws made by the legislature of Pakistan - and in a democracy, Law makers are removed by the public by a vote, not the decisionof your little demi-god of a CJ.

Your Democracy seems only to function as a democracy so long as your CJP decides the rules the chooses to bend.

Ha Ha, this is the will of the public to pay so much extra on the petroleum products?

Your Phd education shows - I too am against taxes, I am against death as well, alas...by the way do you know the amount of taxes Europeans pay on gasoline or what Americans pay.

 

[Patriot]

The people of Pakistan voted for this government therefore people should accept the responsibility.Had Army done this instead of CJP Qsaark would be criticizing army here ..What is CJ A Judge or PM?He is interfering in government matters which is completely wrong according to Democracy.I am sure this guy will run for elections after retirement.