SC strucks down notification for levy tax increase
Shares
ISLAMABAD: (APP) The Supreme Court on Thursday strucked down notification for levy tax increase on import of cell phones and textile machinery.
The court in its verdict remarked that no bill can be passed from the Parliament without approval of the federal cabinet.
A three-member bench of the Supreme Court headed by Justice Saqib Nisar while hearing the appeal against the increase in petroleum levy being declared null and void; delivered an 80-page verdict.
The verdict declared, that the government has the authority to increase or decrease taxes, however the federal cabinet requires time for legislation. No bill can be presented in the parliament for approval until approved by the federal cabinet and the prime minister cannot bypass his cabinet when it comes to legislation, the verdict adds.
The SC verdict ruled that the restrictions outlined in the 1973 Rules of Business apply to the government and cannot be ignored. The prime minister, federal ministers or secretaries are part of the government but not the government themselves which comprises the federal cabinet and the prime minister.
The Supreme Court verdict further adds that changes in budgetary expenditures, the government's discretionary powers and decisions on financials cannot be taken by the prime minister alone. Therefore the government’s levy tax notification is null and void since it was not passed by the federal cabinet.
If the prime minister approves any such law without the federal cabinet's approval, it will be deemed null and void and will have no legal value, the verdict adds.
