PHC declares FBR notification null & void

Humayun Khan
PESHAWAR: Peshawar High Court (PHC) declared Federal Board of Revenue (FBR) issued on 5th August 2020 to transfer tax affairs of 360 major set-ups from Regional Tax Office Peshawar to Islamabad by accepting several writ petitions in this regard, on Thursday.
During hearing Ishaq Ali Qazi, Qazi Ghulam Dastagir, Sheraz Butt and Ishfaq Ahmad Senior advocates while informed that on 5th August 2020 FBR issued notification for transfer of tax affairs of 360 major set-ups from RTO Peshawar to Islamabad Office.
The decision has impacted business set-ups and individuals of Khyber Pakhtunkhwa because it is illegal while FBR ignored ground realities, the petition stated. The counsels argued that PHC had already accepted writ petition in this regard but the decision is incomplete due to death of the then Chief Justice (Waqar Ahmad Seth).
The counsels argued that transferring of tax affairs to other place will also impact National Finance Commission (NFC) award because higher share should be provided to major revenue region in the NFC award. On one hand the industrialists are facing hesitation while on the other transfer of tax affair from RTO Peshawar to Islamabad will decrease Khyber Pakhtunkhwa revenue, the counsel argued. Balochistan High Court (BHC) has also already declared amendments null and void and ordered to RTOs to continue operations, the lawyers informed.
Advocates Ishaq Ali Qazi and Qazi Ghulam Dastagir informed that there is no major tax unit in Khyber Pakhtunkhwa which can dealt with such matters while four to five tax units are established in Punjab to address the such matter.
The counsel argued that FBR notification of 5th August 2020 is unconstitutional while available law is clear regarding jurisdiction of tax units and added that transfer of tax affairs should impact badly industry in Khyber Pakhtunkhwa which is affected from terrorism since long.
The counsels added that it would increase unemployment in Khyber Pakhtunkhwa and decrease revenue of the province while argued that transfer of tax affairs of 360 units from RTO Peshawar to Islamabad is against the law and constitution. The act will create hesitation among capitalists for investing in Khyber Pakhtunkhwa.
PESCO Lawyer Sheraz Butt Advocate informed that PESCO has also filed writ petition in this regard because its Khyber Pakhtunkhwa company for power distribution. The divisional bench of PHC comprised of Justice Ishtiaq Ibrahim and Justice SM Attique Shah accepted writ petitions in this regard and declared FBR 5th August 2020 notification null and void after conclusion of arguments.