PHC suspends KP govt’s notification

Taxing legal profession

PESHAWAR: The Peshawar High Court (PHC) on Thursday suspended the Khyber Pakhtunkhwa government’s notification for imposing sales tax on the legal profession in the province.

A two-member bench comprising Chief Justice Mazhar Alam Miankhel and Justice Roohul Amin Khan suspended the notification. The bench sought reply from secretary Finance, Khyber Pakhtunkhwa, and Khyber Pakhtunkhwa Revenue Authority in the case.

The court issued the directions in a writ petition filed by Khyber Pakhtunkhwa Bar Council through its secretary Naeem Pervez through senior lawyers Tariq Afridi, Muhammad Ijaz Khan and Qazi Jawad Ihsanullah. During hearing, PHC Bar Association President Muzzamil Khan, Qazi Muhammad Anwar and Muhammad Essa Khan also appeared in the case along with the petitioner’s lawyers.

They lawyers argued that the respondents including Khyber Pakhtunkhwa government through chief secretary, secretary Finance, secretary Excise and Taxation, KP Revenue Authority, DG KP Revenue Authority and collector customs have recently imposed purportedly sales tax on legal profession, under the Khyber Pakhtunkhwa Finance Act, 2013 by inserting new entry in Schedule-II through a notification issued on August 4, 2014.

They submitted that through the notification, the provincial government had imposed sales tax on the legal practitioners or consultants and thus notices have been issued to a large number of lawyers across the province for registration and payment of sale tax.

They submitted that the notification through which legal practice has been brought in Schedule-II of the KP Finance Act, 2013 for the purpose of levy of sale tax was illegal and without lawful authority.