LAHORE: Lahore High Court has barred the government from the collection of 150 percent additional tax on sale and purchase of cotton till further order.
According to the details, Justice Shahid Karim heard the case in which the counsel for appellant argued that federal government has increased the tax amount from 20 to 50 rupees on bale through administrative order without permission of parliament.
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He further said that the federal government can impose taxes on the recommendations of Central Cotton Committee through parliament, adding that government cannot impose taxes directly.
He also pointed out that the government has made Central Cotton Committee, a institute for the promotion of cotton marketing, non-functional from many years.
After hearing the arguments from the appellant, the LHC impose ban on the collection of extra tax on the sale and purchase of cotton. The LHC also directed the federal government to submit reply in the case.
