LAHORE: Lahore High Court (LHC) has stopped Punjab government for the collection of Punjab Infrastructure Development Cess till further order.
According to the details, Justice Sajid Mehmood Sathi heard the case filed by Mian Mehmoodur Rasheed. During hearing of the case counsel for petitioner said that this tax was imposed by Punjab government and Punjab Revenue Authority (PRA) collects this tax at the ratio of 0.9 percent from all industries of the province on imports and exports which is illegal. He argued that only federal government have the authority to impose any tax and levy of tax by provincial government is totally illegal.
He said that imposition of this tax is violation of section 142 and 151 of Infrastructure Development Cess Act. He appealed before the court to restrict Punjab government for the collection of Infrastructure Development Cess. After hearing the arguments Justice Sajid Mehmood Sathi has issued stay order and stopped the provincial government to collect Infrastructure Development tax till next date of hearing.
