Federal tax challenged in IHC

ISLAMABAD: A petition has been filed in the Islamabad High Court (IHC) challenging imposition of the federal tax on sale and purchase of private property in Islamabad Capital Territory (ICT).

Petitioner Shahid Orakzai has nominated Ministry of Law and Federal Board of Revenue (FBR) as respondents.The petitioner raised a question before the court that whether the federal government can collect any tax on property transfer if the estimated receipt thereof is not stated in the annual budget statement as required under Article 80 of the Constitution.

In his petition, the petitioner contended that under the Constitution the FBR cannot collect any tax unless the National Assembly has duly sanctioned the estimated receipt of the tax countrywide as required under Article 80.

The petitioner said that this tax is absolutely illegal and does not have authority of the Parliament.

He prayed to the court to declare that the procedure adopted for imposing this tax is ultra vires of the Constitution and the federal government may be directed to withdraw the tax and refund its collection.