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Income support levy case: LHC seeks reply from FBR, law ministry till March 19

Income support levy case: LHC seeks reply from FBR, law ministry till March 19

LAHORE: The Lahore High Court (LHC) issued notices to Federal Board of Revenue and federal law ministry on a petition moved by leader of the opposition in the Punjab Hamza Shahbaz Sharif.

Hamza through his counsel contended that the Inland Revenue department of the FBR unlawfully issued him a notice for the recovery of income support levy. The counsel argued that the purpose of 0.5 percent levy on net moveable wealth, exceeding Rs1 million, was to provide social protection to economically distressed persons and families.

He said the social welfare was a provincial subject and the FBR had no jurisdiction to impose the levy in the name of social protection.

He argued that the notice issued by the Board for the recovery of the income support levy was unlawful and without any jurisdiction.

The counsel also pointed out that the Income Support Levy Act 2013 was introduced for one year only and the parliament had not extended its life. Therefore, he said the action of the FBR was in sheer violation of Article 73 of the constitution. He asked the court to set aside the impugned notice of the FBR for being illegal.

The FBR had issued a notice to Hamza Shahbaz for recovery of Rs1.2 million income support levy. Justice Asim Hafeez issued notices to the law ministry and the FBR for their written replies by March 19 and also directed the registrar office to consolidate all other identical petitions.