LAHORE: The Lahore High Court (LHC) has declared special tax scheme for retailers illegal, terming it ultra vires to the constitution.
The scheme was notified under SRO 608(I)/2014 for retailers in federal budget 2014-15. To give effect to the announcement, SRO 608(I)/2014 dated: 02-07-2014 was issued to substitute rules 3 to 10 of Sales Tax Special Procedure Rules, 2007 (Special Procedures).
The scheme was applicable to all retailers including jewellers who make supplies from retail outlets to final consumers excluding vehicle dealers who shall pay sales tax on the basis of separate scheme and registered retailers exclusively engaged in the goods subject to extra tax.
