Allowing petition filed by Ghee and Steel industries of Fata/Pata, the Supreme Court has held that industries in erstwhile tribal areas enjoy total amnesty from payment of sales tax until June 30, 2024.
A four-member bench headed by Justice Syed Mansoor Ali Shah hearing the matter at length held that entries 151 and 152 of the 6th Schedule to Sales Tax Act whereby tax was imposed on steel and ghee industries was ultra vires the Constitution and based on discrimination.
Read also: Tribal districts exempted from sales tax
This imposition of tax was earlier upheld by larger bench of Peshawar High Court on October 5, 2022.
During the hearing, Shumail Ahmad Butt counsel for petitioner, argued that no intelligible differentia could be established to discriminate these two sectors. Not only these two sectors were singled out but they are put at a loss vis a vis their competitors in settled areas, he added.
The bench agreed with the counsel and allowed appeals filed by the industry.
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