PHC stops KPRA from claiming liabilities

PESHAWAR: A division bench of the Peshawar High Court (PHC) has stopped Khyber Pakhtunkhwa Revenue Authority (KPRA) from claiming liabilities from Souvenir Tobacco Company Limited till further orders.

The PHC bench comprising Justice Syed Arshad Ali and Justice Naeem Anwar issued notices to the Advocate General, KPRA director-general and KP chief secretary to submit their comments. The counsel for the petitioner Qazi Ghulam Dastagir argued that the point of origination of the company was outside Khyber Pakhtunkhwa province, therefore the authority had no jurisdiction to term the company as a withholding agent.

The counsel submitted that in the preamble of Khyber Pakhtunkhwa Finance Act 2013 the word ‘delivered’ which clearly envisages even a service which is being originated from Khyber Pakhtunkhwa, shall tax in the province.