Jamaat-e-Islami Challenges Petroleum Levy in Constitutional Court

Jamaat-e-Islami (JI) Emir Hafiz Naeemur Rehman has filed a petition in the Federal Constitutional Court challenging the legality of the petroleum levy, arguing it has effectively become a tax imposed through executive notifications without parliamentary oversight. The petition contends that the government has granted itself unrestricted power to tax citizens, and asks the court to declare the present levy regime unconstitutional and a violation of citizens’ fundamental rights.

The petition, moved through senior counsel Imran Shafeeq, argues that the current framework under the Petroleum Products Ordinance, 1961, is ultra vires and violates multiple constitutional articles, including those pertaining to parliamentary supremacy in taxation (Article 77) and the National Finance Commission (Article 160). It asserts that while general sales tax enters the divisible pool shared with provinces, the petroleum levy remains exclusively with the federal government, constituting “colourable legislation” to bypass constitutional fiscal distribution.

The plea highlights the levy’s disproportionate impact, stating the flat per-litre charge produces a “radically unequal” burden. For lower-income households, transport-dependent labourers, and small traders, it directly affects subsistence, mobility, and economic survival, while being a manageable expense for the affluent. The petition also argues the related Climate Support Levy is constitutionally infirm as it operates without statutory accountability mechanisms or enforceable environmental obligations governing the use of collected funds.

Among the reliefs sought, JI has asked the court to suspend further enhancement of the levy through executive orders until Parliament enacts constitutionally compliant legislative safeguards and statutory limits. The plea also requests the court to order the formation of an independent expert commission to recommend a new framework and to compel the federal government to produce complete records of the collection, allocation, and utilisation of all amounts realised under the levy.

This legal challenge follows JI’s recent nationwide protests against heavy petroleum levies, rising inflation, and excessive electricity costs. The government is operating under a commitment with the International Monetary Fund (IMF) to maintain a significant petroleum levy, which currently stands at Rs 117.41 per litre on petrol and Rs 42.60 per litre on high-speed diesel.