ISLAMABAD: Jamaat-e-Islami (JI) chief Hafiz Naeemur Rehman has filed a petition in the Federal Constitutional Court (FCC) against petroleum levy system, including the newly introduced “Climate Support Levy.”
The petition, submitted through Advocate Imran Shafique, argued that the petroleum levy violated the Constitution of Pakistan, parliamentary supremacy, the federal structure, fundamental rights, and the rule of law. According to the petitioner, the levy has evolved from a limited regulatory surcharge into one of the federal government’s largest sources of revenue.
Hafiz Naeem contended that the petroleum levy is being imposed through executive notifications and SROs rather than being legislated by Parliament.
Currently, the levy on petrol has reached approximately Rs117.41 per liter, the highest level in the country’s history. He added that the levy alone accounts for around 42–43% of the ex-refinery price of petrol, with additional taxes also collected from the public.
The petition presented federal budget data, noting that in fiscal year 2025–26, the petroleum levy alone is expected to generate approximately Rs1.47 trillion, nearly 8.3% of the federal budget. Total collections to date have surpassed Rs6.3 trillion, contributing to rising costs in transport, agriculture, industry, power generation, food, and daily life.
Hafiz Naeem also highlighted that the Finance Act 2025 removed the legal cap on the petroleum levy. Previously, Parliament set the final levy each year, but the abolition of the Fifth Schedule effectively granted the government unrestricted fiscal power. The petition argued that while the government labels it as a “levy,” it functions as a general tax collected compulsorily from the public without providing any specific service or benefit.
The petition pleaded the Federal Constitutional Court to use its constitutional powers to relieve citizens from this economic burden, restore parliamentary oversight, reinstate legal limits on the levy, and declare provisions of the Finance Act 2025 that allow unlimited executive powers unconstitutional. The court has also been asked to declare the petroleum levy, in its current form, a tax in violation of the Constitution and order the government to disclose all collected funds and their utilization.
