Also issues notice to federal and provincial govts to explain reversal of policy. PHOTO: FILE
The Peshawar High Court (PHC) on Tuesday issued a notice to the Federal Board of Revenue chairman along with federal and provincial governments in a case challenging the collection of advance and additional taxes from owners of hotels.
The notice was issued by a two-member division bench of Justice Yahya Afridi and Justice Ikramullah Khan who were informed by advocates Ishaq Ali Qazi and Zulfiqar Khalil, counsels for petitioner Khalid Ayub, that the federal government had exempted wedding halls from taxes in 2011. The petitioner is the incumbent president of Frontier Hotels Association.
The petitioner’s counsels argued that after the 18th Amendment the collection of such taxes by the centre was illegal, however, the federal government has reverted to collecting these taxes, which is proving to be an extra burden on the owners. They added these hotels had been exempted from such taxes since 2000.
The lawyers told the bench that there is no coordination in collection of taxes between the federal and provincial governments. The wedding halls were paying a total of 35% in taxes to the government.
Published in The Express Tribune, February 19th, 2014.
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