LHC admits petition against levy of 8pc tax

SOHAIL SARFRAZ

ISLAMABAD: Lahore High Court (LHC) has admitted a petition against levy of 8 percent minimum tax on service providers in corporate sector under Finance Act, 2015.

It is learnt that a petition on behalf of a service provider company was filed on the issue of amendments made in Section 153 of the Income Tax Ordinance, 2001 by way of Finance Act, 2015 to make the tax so withheld @ 8% minimum tax as being ultra vires to the Articles 18 & 25 of the Constitution in the LHC.

The said petition was listed for hearing by Justice Shahid Karim. After hearing the preliminary arguments LHC issued notices to the respondent (FOP & FBR) as well as the Attorney General for Pakistan in terms of Order XXVIIA CPC for filing of report and para-wise comments before the next date of hearing.

The petitioner stated that the amendments brought about by the Finance Act, 2015 in section 153 (1) (b) of the Income Tax ordinance 2001 impinge upon the rights of the petitioner under articles 18 and 25 of the Constitution and are thus discriminatory.  It is also submitted that the petitioner is being discriminated against similarly placed persons in the matter of payments of taxes and withholding tax under the provision of the Income Tax Ordinance.