Goods transport: conflicting provision results in two-fold tax

The conflicting provision of the Income Tax Ordinance 2001 relating to levying tax on owner of goods transport vehicle makes it legally ambiguous, resulting in two-fold tax on the sector. It is learnt here on Saturday that Waheed Shahzad Butt, a leading Lahore-based lawyer, has written a letter to the FBR Member Inland Revenue to clarify applicability of tax on the owner of goods transport vehicle.
In response to the representation of the tax expert, the FBR has also issued an income tax clarification to the consultant. Legal expert has also sought clarification whether owner of goods transport vehicle is entitled to exemption from provision of section 153(1)(b) of the Income Tax Ordinance, 2001 if income tax has already been paid u/s 234(1) of the Ordinance by the said transporter? The FBR has received a presentation on the controversy amongst provision of Section 234(1) and Section 153(1)(b) of the Income Tax Ordinance, 2001 from the tax expert.
The legal expert has pointed out that under provisions of section 234(1) of the Income Tax Ordinance, 2001, tax collected from owner of goods transport vehicle has been classified as "Final Tax" on income of such person from plying, or hiring of such vehicle then further deduction of income tax u/s 153(1)(b) of the Ordinance is unfair and contrary to law.
According to the tax expert, the Board's attention has been invited towards provisions of section 234(5) of the Income Tax Ordinance, 2001, wherein tax collected from owner of goods transport vehicle has been classified as 'Final Tax' on income of such person from plying, or hiring of such vehicle.
The relevant portion of the said provision Section 234(5) of the Income Tax Ordinance 2001 says:- Where tax is collected from any person being the owner of goods transport vehicle, the tax so collected shall be the final tax on the income of such person from plying, or hiring out, of such vehicle.
Whereas provisions of section 153(1)(b) of the Income Tax Ordinance, 2001 creates an obligation for the taxpayers to deduct advance income tax at the time of making payment. Transport services are liable to withholding tax @ 2 percent under Division III Part III of the First Schedule to the Income Tax Ordinance, 2001, he said. In light of above provisions of the Income Tax Ordinance, 2001, it is humbly requested to kindly clarify the following propositions: Firstly, whether owner of goods transport vehicle is entitled to exemption from provision of section 153 (1)(b) if income tax has already been paid u/s 234(1) of the Income Tax Ordinance, 2001?
Secondly, what is status of income tax deducted u/s 153(1)(b) shall it be treated as final income tax liability u/s 234(5)?, Waheed added. Responding to the queries of tax lawyer, sources said that the FBR has issued a clarification to Waheed Shahzad Butt, Advocate High Court, Tax Resolution Services Company.
According to the FBR clarification, tax withheld under section 234(5) from owners of goods transport constitutes discharge of final tax liability under section 234(5) of the Income Tax Ordinance 2001 read with Division-III of the First Schedule to the ITO 2001 and they are not required to pay any further tax on their income for plying of the vehicles. However, each case has to be examined and decided on facts to avoid double taxation of the same income, FBR added.