PHC stays taxation on recreational boats

Restrains govt from collecting millions in dues from owners

PESHAWAR:

The Peshawar High Court has issued a stay order against the tax imposed by the Tehsil Municipal Administration (TMA) Khanpur on boats operating at the recreational site of Khanpur Dam. It has also halted the collection of outstanding tax dues amounting to millions of rupees. Additionally, notices have been issued to the Deputy Commissioner Haripur and TMA Khanpur, seeking their responses.

The case was heard by Justice Naeem Anwar and Justice Fazal Subhan of the Peshawar High Court. During the hearing, the lawyer representing the Khanpur Boats Association, Sardar Nasir Aslam Khan, informed the court that his clients operate boats at Khanpur Dam for recreational purposes. He argued that the land and water of Khanpur Dam are owned by WAPDA, and his clients have a contractual agreement with WAPDA in this regard.

However, TMA Khanpur has started illegally collecting taxes from boat operators and has also issued notices demanding payment of outstanding dues worth millions. The lawyer further argued that for a certain period, boating was banned at the dam, and the business was non-operational. Despite this, tax notices were issued for the same period, which is illegal.

He added that TMA Khanpur is charging boat operators based on the number of passengers and is also demanding a registration fee of Rs. 100,000. The court was informed that Khanpur Dam was temporarily closed due to disputes involving the district administration. Since the dam is WAPDA's property, the taxes imposed by TMA are illegal and should be stopped.

After hearing the arguments, the court issued a stay order on the tax collection, restraining TMA from imposing or collecting taxes. The court has also sought responses from all parties in the next hearing.

Meanwhile, the Peshawar High Court has suspended the No Objection Certificate (NOC) issued by the Khyber Pakhtunkhwa government for the establishment of a new sugar mill in Dera Ismail Khan. Notices have been issued to the provincial government and the mill's administration in this regard.