AGL 38.77 Decreased By ▼ -0.12 (-0.31%)
AIRLINK 146.01 Increased By ▲ 0.61 (0.42%)
BOP 5.22 Increased By ▲ 0.02 (0.38%)
CNERGY 3.80 Increased By ▲ 0.02 (0.53%)
DCL 7.60 Decreased By ▼ -0.07 (-0.91%)
DFML 45.87 Increased By ▲ 0.69 (1.53%)
DGKC 81.16 Increased By ▲ 2.03 (2.57%)
FCCL 27.46 Decreased By ▼ -0.54 (-1.93%)
FFBL 54.88 Increased By ▲ 1.55 (2.91%)
FFL 8.61 Decreased By ▼ -0.04 (-0.46%)
HUBC 112.69 Decreased By ▼ -9.13 (-7.49%)
HUMNL 11.36 Increased By ▲ 0.40 (3.65%)
KEL 3.75 No Change ▼ 0.00 (0%)
KOSM 8.42 Increased By ▲ 0.10 (1.2%)
MLCF 35.50 Increased By ▲ 0.74 (2.13%)
NBP 61.25 Increased By ▲ 2.00 (3.38%)
OGDC 170.74 Increased By ▲ 1.52 (0.9%)
PAEL 25.90 Increased By ▲ 0.30 (1.17%)
PIBTL 5.97 Decreased By ▼ -0.02 (-0.33%)
PPL 127.10 Decreased By ▼ -0.40 (-0.31%)
PRL 25.42 Increased By ▲ 0.54 (2.17%)
PTC 12.09 Increased By ▲ 0.15 (1.26%)
SEARL 57.30 Increased By ▲ 1.77 (3.19%)
TELE 7.10 Increased By ▲ 0.03 (0.42%)
TOMCL 34.39 Decreased By ▼ -0.76 (-2.16%)
TPLP 7.00 No Change ▼ 0.00 (0%)
TREET 13.96 Increased By ▲ 0.07 (0.5%)
TRG 47.05 Increased By ▲ 1.23 (2.68%)
UNITY 26.21 Increased By ▲ 0.02 (0.08%)
WTL 1.20 Decreased By ▼ -0.01 (-0.83%)
BR100 9,058 Increased By 78 (0.87%)
BR30 27,313 Decreased By -107 (-0.39%)
KSE100 85,423 Increased By 513 (0.6%)
KSE30 27,351 Increased By 154.1 (0.57%)

ISLAMABAD: Islamabad High Court (IHC) has issued notices to the Federal Board of Revenue (FBR) and Attorney General of Pakistan to submit comments on the imposition of Federal Excise Duty (FED) on transfer or allotment of immovable properties by developers and builders.

Defence Housing Authority (DHA) Islamabad has challenged the vires of Table-III, First Schedule of the Federal Excise Act 2005.

The respondents are Federation of Pakistan through Secretary Revenue; Chairman Federal Board of Revenue and Commissioner Inland Revenue, Large Taxpayer Office, Islamabad.

FED on allotment or transfer of commercial properties challenged

The appellant is a local authority engaged in sale and purchase of land and performs different functions for the inhabitants of its jurisdictional area.

According to the order of the Chief Justice of the IHC in writ petition number 2672 of 2024, the petitioner contended that through the referred amendment, the Excise Duty on transfer or allotment of properties by developers/ bidders has been imposed.

It was further contended that no corresponding change was made in the charging section of the Federal Excise Act, 2005, and without the same this could not have been done. It was submitted that the Excise Duty is leviable on goods and/or services and the referred transfer does not fall within the said categories.

The counsel pointed out that immovable property does not fall within the domain of the goods; hence the Table-III is ultras vires the Act.

“Notice to the respondents. Since vires of Federal Statute have been challenged, notice under Order 27-A CPC shall also be issued to the Attorney General for Pakistan”, IHC order added.

Copyright Business Recorder, 2024

Comments

Comments are closed.

Aamir Sep 30, 2024 09:19am
Stupid taxes like this and 7E have ruined the real estate sector and all investments moving to Dubai. Supreme Court is delaying and sleeping on 7E. Why no decision is coming
thumb_up Recommended (0)
Muqarrab Qayyum Sep 30, 2024 10:17am
A day is coming when every millionaire will move to Afghanistan where tax is 2.5% annually. While in Pakistan we are paying heavy taxes on every step. Business in Pakistan is being blocked.
thumb_up Recommended (0)
Jan Sep 30, 2024 03:07pm
@Aamir , yes so true. Die to trust issues, out of all industries, Only real estate sector was progressing but now real estate has been destroyed also
thumb_up Recommended (0)
Abdullah Sep 30, 2024 05:49pm
@Aamir , no investment in real estate because it was used to park black money anf hype the existing prices.prices need to go down by 60%.not worth existing price.
thumb_up Recommended (0)
Aam Aadmi Oct 01, 2024 07:54am
As an ordinary poor common man I do not understand this and some taxes. If this tax is unlawful, it must go. Go it must not just for DHA but all. I am afraid this might happen.
thumb_up Recommended (0)
Jan Oct 01, 2024 08:22am
@Abdullah, at least money was staying in Pakistan. At least ex pats were investing and at least many industries were functional
thumb_up Recommended (0)
SA Oct 01, 2024 11:05am
@Jan, by that they were unduly sucking up other investment avenues of the capital as well as making 'own housing' unaffordable.
thumb_up Recommended (0)
Adil Shah Oct 01, 2024 02:41pm
Real Estate is a billion dollar industry, it has given huge employment .Why they not considering the real output .Implementation of taxes have dismantled all the investors confidence .
thumb_up Recommended (0)
Asad Oct 01, 2024 03:16pm
Tax real estate the same way salaried class is taxed. Why should we suffer alone
thumb_up Recommended (0)
Aftab Oct 02, 2024 06:54am
@Aamir , our supreme court is working?
thumb_up Recommended (0)