LAHORE: The Lahore High Court (LHC) has declared null and void the Sales Tax collection by the Federal Board of Revenue (FBR) through electricity bills. The LHC has issued a notice to the FBR for appearing before the court on May 3, 2018.
Justice Shams Mehmood Mirza of the Lahore High Court (LHC) heard the appeal filed by the Waqas Steel Mills in which counsel for appellant Muhammad Mohsin Virk advocate argued that the Federal Board of Revenue (FBR) is collecting Sales Tax by including it in the electricity bills.
He prayed that, besides exemption of Sales Tax in the electricity bill by the FBR, the tax collecting authority is also including and collecting the Sales Tax from the textile industry.
He maintained that the income tax laws have given the right to the taxpayer that same taxpayer will pay tax on the purchase or through electricity but now authorities are collecting withholding tax through both electricity bill and purchase that is a violation of Section 19 of Circular 2014 of Income Tax Ordinance.
After hearing the arguments from appellant, the Lahore High Court (LHC) restrained the FBR from the tax collection till further order.
