PESHAWAR, May 31: The National Bank of Pakistan has approached the Peshawar High Court challenging the imposition of property tax on its property by the NWFP government. The bank has filed a writ petition through its regional operational chief, saying that under Article 165 of the Constitution the bank was exempted from taxes to be imposed by the provincial government because it was owned and managed by the federal government.

The petitioner, Tabreez Butt, has requested the court to declare as unconstitutional and illegal the final notice issued by the provincial excise and taxation department to the bank in March 2005. Through the notice, the bank was asked to pay property tax to the tune of Rs1.4 million.

The petitioner has asked the court to restrain the provincial government from coercing and arresting the bank officials in this regard.

The petitioner said that the NBP was owned and managed by the federal government with 80 per cent of majority and controlling shares.

The respondents in the petition are the NWFP chief secretary and the director general, excise and taxation department.