LAHORE, July 7: The Lahore High Court issued on Monday a notice to the Punjab advocate-general on a petition challenging the levy of professional tax on private limited companies by the provincial government during 1999.
Advocate Muhammad Azhar submitted that levy of taxes on private limited companies (referred as corporations) was the exclusive domain of the federal government under the 1973 Constitution. The provincial government could not directly impose taxes on these corporations.
Quoting provisions of the Professional Limitation Act 1941, he said the maximum limit for the levy of tax on companies was Rs50 which was enhanced to Rs100,000 per company through the Punjab Finance Act 1999.
According to the counsel, the amendment was enforced by the provincial government on June 24, 1999, while the Punjab government sought approval of the president six days later which was a violation of the prescribed procedure.
“How could a law be enforced prior to the president’s approval?” the counsel asked, and pleaded the court to strike down the provincial law regarding the imposition of professional tax.
The AG would respond to the petition on July 22.
POLL PLEA: An election tribunal fixed July 15 for further arguments on a petition, challenging the return of Mehdi Hasan Bhatti to the National Assembly.
Mr Bhatti’s counsel argued that the petitioner did not append the list of witnesses and other supporting affidavits with the petition. The failure of the petitioner to comply with the mandatory requirements in this regard had questioned the maintainability of the petition.
Usman Khan Tarar had alleged that Mr Bhatti got elected in last general elections from NA-102 after having filed a fake graduation degree with the returning officer concerned.
According to Mr Tarar, during all the general elections held prior to 2002, Mehdi Hasan Bhatti had been filing his matriculation certificate along with his nomination papers.
Following the enforcement of graduation condition for the prospective candidates for the last general elections, Mr Bhatti acquired a fake graduation degree and filed it with the returning officer concerned subsequently.
Mr Tarar sought the cancellation of Mr Bhatti’s membership of the legislature.