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ISLAMABAD: The Sindh High Court (SHC) directed the petitioners not to move applications in the next four weeks either for the adjustment or refund of the amount paid towards the tax on the annual rental value of the property imposed by the Cantonment Boards.

A division bench of the SHC after hearing the arguments of the counsels disposed of the case.

It noted that the Eighteenth Amendment brought a change to and amended Entry 50 in the Fourth Schedule (Federal Legislative List) of the Constitution of the Islamic Republic of Pakistan.

It said as a consequence thereof, the Federation and all Cantonment Boards lack competence, power, and jurisdiction to levy, charge, impose and recover any or all tax(es) on any immovable property, including, but not limited to, tax on the annual rental value of immovable property.

Collection of professional tax by cantonment boards illegal: SC

Further, the Eighteenth Amendment, consequently, restored the competence and jurisdiction of the province to levy, charge, recover, and legislate on the subject identified above and to pursue it accordingly.

The court added that finally, the amounts so recovered by the Cantonment Boards under the aforesaid subject of tax since the Eighteenth Amendment also call for an account.

At the time of the announcement of this short order, Farogh Naseem, appearing for some of the Cantonment Boards has requested that since a short order has been passed in the above terms and the competence, power, and jurisdiction of the Cantonment Boards could not be enforced for aforesaid subject; therefore, in terms of clause (iii) of the short order, the petitioners may not move applications in the next four weeks either for the adjustment or refund of the amount paid towards the aforesaid subject, i.e., tax on the annual rental value of the property, as the respondents intend to approach the Supreme Court.

The SHC; therefore, ordered accordingly.

Copyright Business Recorder, 2023

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