Islamabad: JI Amir Hafiz Naeem ur Rehman has challenged petroleum levy in Federal Constitutional Court (FCC).

Newly introduced climate support levy has also been challenged in the petition.

Constitutional petition against petroleum levy and climate levy has been filed in FCC through advocate Imran Shafiq.

The petitioner has taken the plea in the petition that petroleum levy is against the constitution of Pakistan, parliamentary supremacy , federal system, basic rights and rule of law. Petroleum levy no more remains a limited regulatory surcharge but petroleum levy has transformed into the biggest revenue source for federal government.

The petition said the petroleum levy is being run through executive notifications and SROs persistently instead of parliament. Petroleum levy of about Rs 117.41 on petrol has reached highest level of country history.

Only petroleum levy constitutes 42 to 43 percent of cost of basic X refinery of Petrol. In addition to levy different taxes are being collected from the people.

The statistics of federal budget have also been presented before the court.

It has been told in the petition that about 1.47 trillion rupees are estimated to be collected only under the head of petroleum levy in the fiscal year 2025-26. This constitutes about 8.3 percent of the entire federal budget.

Total recoveries under petroleum levy have surpassed about 6.3 trillion rupees.

Early parliament itself decided the final quantity of petroleum levy every year in the past. But the parliament gave open and limitless financial power to government practically by abolishing fifth schedule.

Government names this recovery as levy but petroleum levy has taken the shape of tax in fact which is recovered from people forcibly.

No specific service or benefit is provided to people in return for levy.

Hafiz Naeem took the plea that attempt was made to escape constitutional requirements and restrictions by giving title of petroleum levy to a tax.

The petition said the FCC should exercise its constitutional powers to rid people of this continued economic exploitation. Parliamentary monitoring and legal limits be restored. Section 3 of Finance act 2025 and limitless executive powers under it be declared contrary to constitution.

JI Amir requested the court to declare levy as tax and nullify it being in clash with the constitution. Government be ordered to present details of use of levy . Executive be stopped from placing limitless fiscal burden on shoulders of people through notification and SROs.