Lahore High Court (LHC), while declining to stay the recovery of agriculture income tax, has issued notices to the respondent federal and provincial governments and also called for report and comments from respondents within two weeks in several identical petitions filed by Muhammad Ramzan and others.
The petitioners contended that they are already paying income tax and other taxes, hence the agriculture income tax is additional financial burden on them as well as other peasants.
It was contended that the agriculture income tax was levied through Punjab Agriculture Income Tax Act, which is illegal, unconstitutional and levied without lawful authority.
It was contended that the provincial government could not impose tax in question in violation to article 04 and 18 of the constitution.
It was prayed to the court to declare the tax in question as illegal, unconstitutional and levied without lawful authority.
It was also prayed to the court to restrain the respondents from recovering the tax in question till the disposal of the petition.
The court, after hearing the petitioner's counsel at length, issued notice to the respondent governments and rose for the day.