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LHC restrains FBR from collection of Sales Tax thru electricity bill

LHC restrains FBR from collection of Sales Tax thru electricity bill

LAHORE: The Lahore High Court has stopped the Federal Board of Revenue (FBR) from tax collection from Steel Sector through special procedure. The LHC ordered the FBR not to collect Sales Tax from the non-paid taxpayers. The order has been issued on an appeal filed by the Badami Bagh Steel Mills.

Justice Jawad Hassan heard the case in details in which counsel for appellant Muhammad Mohsin Virk argued before the court that, under the Sales Tax Act, taxpayer has a choice to deposit the Sales Tax through common procedure instead of the special one.

Besides allowing the Act, the Federal Board of Revenue (FBR) is collecting the Sales Tax through special procedure through electricity bills. He prayed the court to kindly stop the Federal Board of Revenue (FBR) from the tax collection through special procedure.

After hearing the arguments from appellant, the Lahore High Court (LHC) has restrained the FBR from tax collection through special procedure.

It is pertinent to mention here that the LHC has already issued the order to stop the sales tax collection through electricity bills.