Pakistan court cuts new oil tax: BBC

Pakistan's Supreme Court has slashed a new carbon tax imposed on oil by the government, bringing down oil prices by more than 10%.

The court order is temporary, pending a decision on petitions opposing the tax and withdrawing of power subsidies.

If the order is upheld, the government will lose $1.52b in revenues during the fiscal year ending this June. The budget deficit will also widen.

The court order has renewed a debate on "judicial activism" in Pakistan.

The BBC's M Ilyas Khan in Islamabad says the debate is over the extent to which the judiciary can intervene in the affairs of the executive without undermining the latter's ability to perform its functions.

Shortfall

Tuesday's Supreme Court order slashing the tax was issued by a three-member bench of the court, headed by Chief Justice Iftikhar Mohammad Chaudhry.

The order came a day after it issued another temporary injunction preventing the government from withdrawing over 50 billion rupees ($625m) worth of subsidies on electricity.

Together, the two measures will create a revenue shortfall of nearly 200 billion rupees in the current budget.

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Pump Prices Hurt Americans: WSJ

CAPITAL JOURNAL
By GERALD F. SEIB

Both presidential candidates are focusing on the economy this week, and for good reason: $4-a-gallon gasoline has Americans sliding into pocketbook shock.

But pain at the pump is only one reason energy now should be the central issue of this year's campaign. Here's the other, more insidious one: High oil prices are shredding America's financial independence and producing a massive transfer of wealth from U.S. pocketbooks into the hands of suspect actors around the world, including Iran, Venezuela and Russia.

The U.S., in other words, now has an energy problem that is not only draining the bank accounts of its own citizens, but filling up the bank accounts of some who work against American interests around the globe. It's hard to imagine an issue that more deserves campaign prominence.

For more on this article, please click on the following link: Pump Prices Hurt Americans: WSJ