PHC stops collection of sale-tax from industry at EPZA

Humayun Khan

PESHAWAR: The divisional bench of Peshawar High Court comprising of Justice Ijaz Anwar and Justice Arshad Ali has stopped competent authorities from collecting sale tax Express Processing Zone Authority till conclusion of the petition, on Monday.
The counsel for petitioner Babar Khan Yousafzai Advocate appeared before court while Ministry Industries& Production, Federal Finance, Federal Board of Revenue, Chairman Export Procession Zone Authority and Collector Customs along with others were made respondents in the instant petition.
The counsel Babar Khan Yousafzai Advocate informed Peshawar High Court that petitioner has made investment in industrial unit of Express Processing Zone Authority while added that the aim of establishment of zone to increase exports by providing exemption from various taxes.
The counsel added that units established in Express Processing Zone Authority (EPZA) has provided exempted from income sale taxes along with custom duties to increase export by attracting investors.
The counsel argued that petitioner is importing raw materials while exporting various products but government had withdrew tax-exemption from EPZA in Mini budget passed recently which had led to stoppage of material at port after imposition of sale tax.
The counsel informed that the petitioner does not registered with sale tax department while there is no procedure for provided for submission and return of sale-tax. The counsel argued that the imposition of sale tax is impacting export and import.
The divisional bench has granted status quo to petitioner by stopping competent authorities from collection sale-tax and adjourn further hearing for next month.