LAHORE: Lahore High Court (LHC) suspended one percent increment in General Sales Tax (GST) by the Federal Government through the amendment in Finance Act 2013. The increment was challenged in the LHC by the M/s Bata, M/s Service and other industries.
According to details, Justice Ayesha-A-Malik heard the case in which the appellant challenged one percent increment in GST. The counsel of appellant argued that the increment is illegal.
The government approved GST from 16 to 17 percent which is null and void by the Supreme Court in Iqbal Jhagra case. Despite the orders of the Supreme Court, the government has increased GST.
The counsel of Federal Board of Revenue (FBR) Sarafraz Cheema argued that Parliament is completely authorized to increase and decrease GST. He added that after the fulfillment of all legal requirements the government decided to increase GST by one percent on 21 June 2017.
After hearing the both sides, the LHC suspended one percent increment and announced it null and void.
