Bad law?: Court moved to strike amendment in Income Tax Ordinance 2012

Government had bound the manufacturers to collect one per cent tax from distributors, wholesalers and dealers

LAHORE:

The Lahore High Court on Wednesday issued notices to the Federal Board of Revenue chairman, the finance secretary and the revenue secretary, for August 6, on a petition challenging an amendment in the Income Tax Ordinance 2001 through the Finance Bill 2012.

Mandiali Paper Mills Limited has filed the petition through Advocate Anwar Kamal and submitted that the federal government had bound the manufacturers to collect one per cent tax by amending Section 153(A) of Income Tax Ordinance 2011 from distributors, wholesalers and dealers involved in different type of business. The FBR, the government and its concerned departments had not consulted with the stakeholders concerned and introduced the “controversial clause” in the ordinance, says the petition. Requiring private businessmen to collect tax violates Articles 18 and 24 of the Constitution of Pakistan, Kamal said.

He requested the court to strike down the clause 153(A) by declaring it illegal and unconstitutional. He also prayed that enforcement of the clause be stopped until the court decides on the plea.

Published in The Express Tribune, July 26^th, 2012.