LAHORE, Aug 30: The levy of withholding and professional taxes on owners of pick-up vehicles by the Punjab Excise and Taxation Department was challenged in the Lahore High Court on Saturday.

The Lahore Pick-up Union submitted that the excise and taxation department was collecting Rs1,200 and Rs200 withholding and professional taxes, respectively, from each pick-up owner without any lawful authority.

Petitioner’s counsel Muhammad Azhar argued that during 2001, the federal government had withdrawn levy on withholding tax on 10 years old vehicles having less than 2,030kg laden capacity through an amendment in Section 234 of the Income Tax Ordinance 1979.

Besides, the excise and taxation department had been barred from charging withholding tax at the time of collection of token tax.

According to the counsel, the Central Board of Revenue had also issued a circular regarding withdrawal of the professional tax. “Despite all this, the excise and taxation department has been collecting the withholding tax from the owners who own pick-up vehicles manufactured 10 or more years ago besides the professional tax without any legal justification”.

He submitted that as prescribed by Article 163 of the 1973 Constitution, the provincial government could only impose tax through legislation on people engaged in a profession or in a legal trade. In the present case, no such legislation had been made.