PESHAWAR: The Peshawar High Court has issued a stay order against the recovery of different taxes by the Tribal Areas Electric Supply Company (Tesco) from a marble factory in Bajaur tribal district and asked the Federal Board of Revenue (FBR) to respond to a petition on the matter within a fortnight.

A bench consisting of Justice Lal Jan Khattak and Justice Syed Arshad Ali also ordered the clubbing of the petition of the Imtiaz Khan Marble Factory with similar ones for a joint hearing.

The hearing schedule will be issued afterward.

The marble factory had insisted that it was not liable to pay variety of taxes imposed in the electricity bills for being located in the erstwhile Federally Administered Tribal Areas.

It requested the court to declare that the imposition of sales, income, further, extra and other taxes in the electricity bills is illegal and against the commitments made by the government at the time of the passage of the Constitution (Twenty Fifth Amendment) Act, 2018, and a notification issued on Oct 5, 2018.

The petitioner prayed the court to direct the respondents, including FBR and Tesco, to send power bills to it without including those taxes.

It also sought an interim relief from the court in the form of a stay order against the recovery of the taxes until the final disposal of the petition.

Manzoor Bashir Tanghi, lawyer for the petitioner, said his client was a consumer of Tesco and regularly paid bills but was surprised to receive electricity bill for Nov 2020 showing heavy amount under the heads of income tax, sales tax, fuel surcharge, extra tax and further tax without any legal justification.

The lawyer said his client was a manufacturing unit, which did its business in the erstwhile Fata.

He said the petitioner had explained to the relevant Tesco officials that for being an industrial unit in the former Fata, the consumption of electricity by it was not amenable to the levy of any income tax or sales tax, as the Income Tax Ordinance, 2001, and Sales Tax Act, 1990, weren’t extended to the region.

Published in Dawn, April 25th, 2021

Opinion

Editorial

Business concerns
Updated 26 Apr, 2024

Business concerns

There is no doubt that these issues are impeding a positive business clime, which is required to boost private investment and economic growth.
Musical chairs
26 Apr, 2024

Musical chairs

THE petitioners are quite helpless. Yet again, they are being expected to wait while the bench supposed to hear...
Global arms race
26 Apr, 2024

Global arms race

THE figure is staggering. According to the annual report of Sweden-based think tank Stockholm International Peace...
Digital growth
Updated 25 Apr, 2024

Digital growth

Democratising digital development will catalyse a rapid, if not immediate, improvement in human development indicators for the underserved segments of the Pakistani citizenry.
Nikah rights
25 Apr, 2024

Nikah rights

THE Supreme Court recently delivered a judgement championing the rights of women within a marriage. The ruling...
Campus crackdowns
25 Apr, 2024

Campus crackdowns

WHILE most Western governments have either been gladly facilitating Israel’s genocidal war in Gaza, or meekly...