LAHORE: Lahore High Court (LHC) has suspended 7.5 percent extra tax notices to the public companies issued by the Federal Board of Revenue (FBR).
According to the details, Justice Shahid Karim of Lahore High Court heard the appeal filed by the M/s Zafar Textile in which counsel for appellant argued that if 40 percent profit not given to the share holders then 7.5 percent extra sales tax can be charged on the companies, so the new tax by the Federal Board of Revenue (FBR) is illegal and against rules and law.
Counsel further added that court may declare illegal the section 5 of Income Tax Ordinance 2001. He further prayed before the court to suspend the illegal notice to the companies issued by the Federal Board of Revenue (FBR).
After hearing the arguments from the appellant, Lahore High Court (LHC) has suspended the extra sales tax notices to the public companies.
Court also issued notice the federal government and Federal Board of Revenue (FBR) and sought reply from both sides on the next date of hearing. Till the further order by the court and decision of case, FBR cannot collect 7.5 percent extra new tax from the public companies.