ISLAMABAD – The Supreme Court (SC) declared the implementation of taxes to be “unconstitutional,” ruling that the Ghee and Steel industries of the former Fata/Pata enjoy complete amnesty from paying sales tax until June 30, 2024.
The petitions submitted by industries in the former Federally Administered Tribal Areas (Fata) and Provincially Administered Tribal Areas (PATA) were heard by a four-member court led by Justice Syed Mansoor Ali Shah.
The Peshawar High Court’s (PHC) ruling, which supported the tax’s implementation, was overturned by the SC on the grounds that the tax imposed on the steel and ghee sectors under articles 151 and 152 of the Sixth Schedule to Sales Tax Act was discriminatory and outside the bounds of the Constitution.
The petitioner’s attorney contended in the hearing that there was no discernible difference that could be used to distinguish between these two industries.
The attorney said, “Not only were these two sectors singled out, but they are also at a disadvantage compared to their competitors in established areas.” The bench accepted the industry’s appeals after finding concurrence with the attorneys.
The Peshawar High Court’s (PHC) ruling, which supported the tax’s implementation, was overturned by the SC on the grounds that the tax imposed on the steel and ghee sectors under articles 151 and 152 of the Sixth Schedule to Sales Tax Act was discriminatory and outside the bounds of the Constitution.
The petitioner’s attorney contended in the hearing that there was no discernible difference that could be used to distinguish between these two industries.
The attorney said, “Not only were these two sectors singled out, but they are also at a disadvantage compared to their competitors in established areas.” The bench accepted the industry’s appeals after finding concurrence with the attorneys.