LAHORE: The Lahore High Court on Friday sought a reply from the federal government on petitions challenging five per cent increase in sales tax on petroleum products. Advocate Ishtiaq Chaudhry and local trader leader Naeem Mir assailed the increase in sales tax value from 17 to 22 per cent for being illegal.

The petitioner’s counsel argued that the government was not giving due benefit of decline in POL prices in international market to its citizens. He said the government nitially decreased the prices but increased the sales tax to keep its revenue generation intact.

He said the increase in the sales tax through an SRO issued by the Federal Board of Revenue (FBR) was in sheer violation of laws. The counsel asked the court to strike down the increase in the sales tax for being illegal.

Justice Shahid Jamil Khan heard initial arguments and sought reply from the government by Jan 7.