Devolution: PHC seeks AGP’s help over wedding hall taxes

Govt imposed 10% food tax, 16% sales tax on hall owners.

PESHAWAR:

The Peshawar High Court (PHC) has directed the Attorney General of Pakistan (AGP) and Advocate General of Khyber-Pakhtunkhwa (K-P) to appear in person and assist the court in a case in which the petitioner has challenged the collection of three types of taxes on wedding halls.

The order was issued by a bench of Justice Yahya Afridi and Justice Malik Manzoor Hussain.  The bench was informed by advocates Ishaq Ali Zaqi and Zulfiqar Khalil that the federal government has imposed a 10% federal income tax, 10% food tax and 16% sales tax on the owners of wedding halls.

The advocates maintained the provincial government does not levy this tax, and contested the federal tax under the 18th Amendment to the Constitution. The petitioner’s counsels argued the federal government has nothing to do with collection of these taxes, which come under the domain of the provincial government.

The advocates also told the bench the K-P government has not adequately taken up the issue with the federal government and has left owners of wedding halls to suffer at the hands of unfair taxes.

After hearing the arguments, the court directed the AGP and the Advocate General of K-P to appear in person to assist the court with the matter.

On February 18, the PHC issued a notice to the Federal Board of Revenue’s chairman, the K-P government and the federal government, challenging the collection of advance and additional taxes from hotel owners. The notices were issued on the petition of Frontier Hotels and Restaurants Association President Khalid Ayub.

Meanwhile, Advocate Aminur Rehman challenged the issuance of a show-cause notice sent to him by PHC Bar Association President Ishtiaq Ibrahim over a meeting with the PHC Chief Justice on February 21. The appeal was filed with the K-P Bar Council.

“The impugned show-cause notice has been issued on the basis of mala fide intentions, ulterior motives and baseless allegations, because the appellant was a rival candidate in the last presidential election of PHC Bar Association,” stated the appeal.

Published in The Express Tribune, February 26^th, 2014.