Sweet relief: Court suspends tax orders for two FATA ghee mill

PESHAWAR:

The Peshawar High Court suspended the Federal Board of Revenue’s orders to collect income and sales taxes from two ghee mills in the Federally Administered Tribal Areas (Fata) on Tuesday. 

Advocate Isaaq Ali Qazi, counsel for Bara Gee Mills and Gul Cooking Oil Mills, told Justice Yahya Afridi and Justice Musarrat Hilali that in 2001, both mills exported products to Afghanistan based on a stay order of the court. He said the government had exempted them from the payment of some duties, including income and sales taxes. Later the court told both mills to pay other duties also levied on the product.

Qazi added the FBR is now sending notices to the ghee mills for the collection of income and sales taxes. Both mills are located in Fata where the law of these taxes is not applicable, he told the court.

“These mill owners are ready to pay some duties on the products but the collection of sales and income tax is not legal.”

The court then suspended the FBR’s order to collect the two levies from Bara and Gul mills, and ordered the owners to deposit a bank guarantee instead.

Published in The Express Tribune, July 16^th, 2014.