Federal projects: SHC restrains Sindh from collecting service tax

KARACHI: The Sindh High Court on Friday restrained the Sindh Revenue Board from collecting services tax from Kannup’s power project in Karachi. The interim order came on the petition of Kannup against imposition of services tax by the Sindh Revenue Board.

The petitioner’s counsel submitted that the federal government’s property or income have been exempted from taxation of the provincial government. He submitted that the provincial government has issued notices for collection of services tax from Kannup, which was working under the Pakistan Atomic Energy Commission.

The counsel submitted that Chinese firms were working on the federal government’s power plant projects in Karachi and hence the provincial government could not impose levy on the federal government properties or income. The court, restraining the Sindh Revenue Board from collecting services tax, directed the SRB to file comments on the petition on the next date of hearing.