Private marriage lawns’ operators challenge advance withholding tax

Notice issued to the deputy attorney general to file comments by November 1.

KARACHI: The Sindh High Court (SHC) has restrained the relevant authorities from harassing the owners of private marriage halls and lawns into charging 10 per cent advance withholding tax from citizens organising functions.

The bench, headed by Justice Aqeel Ahmed Abbasi, also issued a notice to the deputy attorney general to file comments of the federal authorities to justify the tax levied on the citizens on Thursday.

The All Karachi Marriage Halls Association, a representative body of the private marriage lawns, assailed that the advance withholding tax was imposed through an amendment to the income tax ordinance.

The petitioner had challenged the vires of the Section 236-D inserted in the Income Tax Ordinance 2011 made through the Finance Act 2013.

Through the newly added section, the owners and operators of the marriage halls and lawns have been included in the list of the prescribed persons supposed to act as collecting agents for the advance withholding tax from people holding functions at private halls, lawns and hotels, said the association’s members.

The private lawns owners are now tasked to collect 10 per cent advance withholding tax from the organisers to pay the amount to the taxation department, in addition to the 16 per cent income tax already levied on them, said the association’s lawyer Amjad Javed Hashmi.

He stated that the industry was already suffering due to the worsening law and order situation in the city. The provisions of the new section are arbitrary, impractical and discriminatory. This amounts to putting an additional burden on the lawns operators and owners, he added.

The lawyer asked the court to declare the inclusion of the new section as discriminatory and a violation of the law. The court was also requested to suspend the operation of the same.

After preliminary hearing, the bench issued notice to the deputy attorney general for filing comments of the federal authorities by November 1. “In the meantime, the respondents are directed to act strictly in accordance with the law and not harass them,” the bench ordered.

Published in The Express Tribune, October 26^th, 2013.