LAHORE: The Lahore High Court has observed that unfortunately a common person earning minimum wages is being subjected to as much indirect taxes as a rich person pays in the country.

Justice Shahid Jamil Khan regretted that the price-control and competition laws were not enforced effectively in Pakistan, as was discernible from pleadings and arguments during proceedings.

The judge made these observations in a 14-page verdict issued on dozens of petitions filed by sugar mills and others on the question of price control of the essential commodities by the government.

The judge remarked that the price control and competition laws were meant to protect consumers’ right, however, these were required to be implemented by striking a balance.

Bars govt from action against making jaggery

He said a thriving, stable economy was the backbone of a country, for which policy making and enforcement of law was a sine qua non (essential).

He said excessive price control might lead to disruptions in the market, like decrease in quality [of products] and losses to producers, which could result in flight of investment.

“An inevitable result of which is unpredictable price hike of essential commodities and failure of the government to bring the essential commodities within minimum purchasing power of lower income class, which is duty of the state, against fundamental rights,” the judge said.

The petitioners’ counsel pointed out that instead of controlling price of sugar, as an essential commodity, the farmers were restrained from manufacturing gur (jaggery), even for their own consumption, and were forced to supply sugarcane to the factories, in the garb of Gur Control Order, 1948.

An assistant attorney general submitted in writing that Punjab had not adopted or applied the Order of 1948 till date. On the contrary, the petitioners’ side pleaded that farmers were harassed by the provincial administration, whenever any of them attempted to manufacture jaggery or shakkar (raw sugar) out of his own sugarcane. The federation had neither owned nor defended the Order of 1948, he added.

The judge observed that there was no apparent existing force of law behind the Order of 1948.

Even if it existed, it appeared to be in violation of Article 18 of the Constitution, particularly when no support price was fixed for purchase of sugarcane by the government to protect the grower’s interest.

“The Order of 1948 is held ultra vires hence void, being in violation of fundamental rights guaranteed by the Constitution,” the judge ordered, restraining the federal and provincial authorities from taking action against farmers for manufacturing jaggery or raw sugar.

The judge further ordered that the provincial government should ensure that all essential commodities were sold at the controlled and fixed rates on the retail outlets across the province, which was its constitutional duty.

He noted that the practice of taking hold of any essential commodity and selling it through or under its administration should be avoided, to restore dignity of consumers under article 14 of the Constitution, who were compelled to stand in queues with proof of their identification.

Justice Khan said the matter of sugar price agitated by the mills had already been referred to the appellate committee available under the law. However, he said, any amount found to have been charged from the consumers, by the sugar mills, in excess of the price fixed by the government and finalised after the appellate order, should be determined and its benefit would be extended to the consumers of sugar, while final determination of the price would be done by the appellate committee.

Published in Dawn, October 3rd, 2021