SX declares sales tax on ex-FATA industries unconstitutional

The Supreme Court (SC) has ruled that Ghee and Steel industries of erstwhile Fata/Pata enjoy total amnesty from payment of sales tax until June 30, 2024, terming the imposition of taxes ‘unconstitutional’, reported 24NewsHD TV channel Wednesday.

A four-member bench headed by Justice Syed Mansoor Ali Shah heard the petitions filed by industries in erstwhile, Federally Administered Tribal Areas (Fata)/Provincially Administered Tribal Areas (PATA).

Annulling the Peshawar High Court’s (PHC) decision – which upheld the imposition of tax, the SC bench said that entries 151 and 152 of the 6th Schedule to Sales Tax Act whereby tax was imposed on steel and ghee industries was ultra vires the Constitution and based on discrimination.

During the hearing, the petitioner’s counsel argued that no intelligible differentia could be established to discriminate these two sectors.

“Not only these two sectors were singled out but they are put at a loss vis a vis their competitors in settled areas”, the counsel added. The bench agreed with the counsel and allowed appeals filed by the industry.