LAHORE: The Lahore High Court (LHC) has suspended Rs 150 million property tax notices to WAPDA House by Excise and Taxation Department.
Justice Shahid Kareem heard the appeal filed by WAPDA authority in which counsel for the appellant argued that WAPDA is subsidiary institution of the federal government. The provincial government cannot impose taxes on the federal institutions.
Under the article 165 of constitution of Pakistan, the institutions of the federal government are exempted from property tax, he added.
Assistant advocate general Anwar Hussain appeared on behalf of provincial government, he argued that provincial government has authorized to collect taxes from federal government institutions.
Added more, WAPDA is an independent institution and under the under the section 13, 22 and 24 of WAPDA act, WAPDA house having not any association with federal government regarding property tax.
Furthermore, WAPDA house totally not used for government use but many shops used for commercial purpose and authorties collect fair on the shops.
After hearing the arguments from both sides Lahore high Court (LHC) has decleared null and void all notices by the excise and taxation department to WAPDA house.
Court also said in the remarks that provincial government cannot collect taxes from the federal institutions.
