PHC stops KPRA to receive tax from Souvenir Tobacco

Humayun Khan

PESHAWAR: The two-member bench of Peshawar High Court (PHC) comprising of Justice Syed Arshad Ali and Justice Naeem Anwar has stopped Khyber Pakhtunkhwa Revenue Authority (KPRA) from claiming liabilities from Souvenir Tobacco Company Limited till further orders.

The counsel for petitioner was Qazi Ghulam Dastagir Advocate argued that the point of origination of the company outside Khyber Pakhtunkhwa province, therefore the authority has no jurisdiction to term the company as a withholding agent.

The learned counsel Qazi Ghulam Dastagir Advocate further submitted that in the preamble of Khyber Pakhtunkhwa Finance Act 2013 the word ‘delivered’ which clearly envisages that even a service which is being originated from Khyber Pakhtunkhwa, shall tax in the province.

However, all provinces had made legislature in this regard but only Khyber Pakthunkhwa had used the word ‘delivered’ which will effect companies who are providing services in other parts of the country and it lies liability on production units of dual tax which is against the constitution of Pakistan.