KARACHI: M/s Express Security has approached the Sindh High Court (SHC), challenging impugned notice of imposition of sales tax on the petitioner/ security services under the Sindh Sales Finance Act 2013 issued by the Assistant Commissioner – 7 Sindh Revenue Board.
M/s Express Security, through its Chief Executive Officer Captain (r) Tahir stated that petitioner being security services has been duly registered and also registered with the Federal Board of Revenue. It said that the Ministry of Finance Sindh, enacted “Sindh Finance Act 2013 ” whereby Sindh Sales Tax at the rate of 10 percent has been levied on services of the security agancies with effect from July 1, 2013.
According to the petitioner, Assistant Commissioner – 7 Sindh Revenue Board issued a notice dated May 20, 2016 to the petitioner, asking for registration of the company with the Sindh Revenue Board (SRB) for sales tax on services. The petitioner stated that it is the duty of the state to provide expeditious and inexpensive justice. The Act 2013, insofar as it seeks to tax the services being rendered by the petitioner impedes access to justice and is in violation of the constitutional and fundamental rights of both the petitioner and its clients who seek access to justice and are entitled under the law and the constitution to inexpensive legal/ consultative advice.
Counsel argued that the Act, 2013 imposes a direct burden of tax on the right to access to justice/ legal remedy, this is unconstitutional. The act and conduct of the respondents is misused of power. Petitioner had already paid the income tax to the concerned authority.
Citing secretary Ministry of Finance Sindh, secretary Sindh Revenue Board, assistant commissioner – 7 Sindh Revenue Board as respondents Petitioner pleaded the SHC may set aside impugned notice issued by the respondents and restrain them from taking any coercive action against the petitioner.
