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Luxury tax recovery notices set aside


LAHORE: The Lahore High Court on Wednesday dismissed hundreds of petitions challenging Punjab government’s power to impose luxury tax on houses but set aside recovery notices issued without due course of law.

A division bench comprising Justice Shahid Jamil Khan and Justice Sajid Mahmood Sethi decided the petitions through a short order.

The petitioners through counsel had contended that the government imposed luxury tax by amending section 8 of Finance Act. They said the luxury tax was inconsistent with fundamental rights as guaranteed by the Constitution and amounted to double taxation.

The petitioners submitted that the government was adopting coercive measures for the recovery of the tax.

They asked the court to set aside the notices issued by the excise and taxation department and restrain it from recovering the tax.

The bench set aside the recovery notices but did not strike section 8 of the Finance Act.

Published in Dawn October 20th, 2016