ISLAMABAD: The Supreme Court on Friday declared unconstitutional the one per cent increase in general sales tax (GST) and ordered immediate withdrawal of the hike, DawnNews reported.
A three-member bench of the apex court, headed by Chief Justice Iftikhar Muhammad Chaudhry, was hearing the case initiated on a suo motu notice following the sudden increase in petroleum prices.
Earlier, the price increase came after Finance Minister Ishaq Dar proposed in his budget speech that the GST be raised from 16pc to 17pc.
During today's hearing, the bench observed that the government did not possess the right to impose an additional sales tax, adding that it should be withdrawn with immediate effect.
Moreover, the decision of nine per cent additional sales tax on Compressed National Gas (CNG) was also declared unconstitutional.
The court said no additional tax could be imposed without approval of budgetary bills before the Parliament in the shape of a finance bill.
The bench ordered the government to deposit all the money recovered through imposition of additional sales tax to the office of the Supreme Court Registrar, saying it was refundable.
The Supreme Court will announce its detailed judgment on the case later.