LAHORE: The Lahore Cantonment Board (LCB) has approached the Lahore High Court (LHC) against the imposition of provincial sales tax on its services by the Punjab Revenue Authority (PRA), pleading that such taxation is unconstitutional and beyond the legislative competence of the province.

Filed through Advocate Khurram Shahzad Chughtai, the petition challenges the validity of the Punjab Sales Tax on Services Act, 2012, along with subsequent amendments including the Punjab Finance Act 2025.

The LCB argues that the law is in violation of articles 141, 142 and 143 of the Constitution, as it purports to extend provincial taxation powers to statutory functions of a federal entity.

The board maintains that it operates strictly under the federal government through the ministry of defence and falls outside the domain of provincial taxation authorities. It alleges that the PRA launched a persistent and untenable campaign to levy sales tax on services rendered by the board, despite constitutional restrictions.

The LCB further invokes entries 2, 49, 57, 58 and 59 of the Federal Legislative List, asserting that taxation of federal agencies remains an exclusive prerogative of the federation.

“Any attempt by provincial authorities to impose levies on a federal institution directly violates the division of powers outlined in the Constitution,” it adds.

The board pleads that the impugned legislation infringes upon fundamental rights guaranteed under Articles 4, 10-A, 18, and 24, particularly the right to fair trial, freedom of trade and profession, and protection from unlawful taxation.

It seeks a declaration from the court to strike down the impugned provisions and restrain the PRA from pursuing tax claims against the board.

The petition names the province of Punjab, the PRA, finance department, law & parliamentary affairs department and others as respondents.

VERDICT RESERVED: A two-judge bench of the Lahore High Court (LHC) on Tuesday reserved its decision on an objection raised by the registrar office on an appeal of Barrister Hassaan Niazi, a nephew of PTI founding chairman Imran Khan, against his trial in a military court.

The bench comprising Justice Syed Shahbaz Ali Rizvi and Justice Tariq Mehmood Bajwa heard arguments of the appellant’s counsel on the objection.

The office had objected to the appeal on the ground that certified copies of the impugned documents were not furnished by the appellant.

The appeal contended that following his arrest in the May 9 case, Mr Niazi was not produced before a civilian court, instead, Sarwar Road police handed him over to the military. It argued that this handover was unlawful and carried out without any judicial order.

Mr Niazi asked the court to declare null and void the commanding officer’s notification dated Aug 17, 2023, authorising his custody by the military. He also sought to set aside his transfer to military custody and all subsequent proceedings conducted by the military court.

The appeal further prayed for his release from jail or for an order directing his production before an anti-terrorism court.

Mr Niazi was sentenced to ten years imprisonment in December 2023 in the May 9 Jinnah House attack case.

Published in Dawn, September 24th, 2025