Islamabad: The Islamabad High Court (IHC) has issued notices to the Federal Board of Revenue (FBR) and the Attorney General after the Defence Housing Authority (DHA) Islamabad challenged the Federal Excise Duty (FED) on property transfers and allotments by developers and builders. The report was drawn from an article published on September 30.
According to the details, DHA Islamabad argues that the inclusion of property transfers under this duty, introduced through an amendment to Table III of the First Schedule of the Federal Excise Act, 2005, may not align with the Act. The petition states that the charging section of the Act does not list “immovable property” as subject to excise duty, as it is not classified as “goods”.
The petition questions whether the Act’s jurisdiction covers immovable property transfers, which traditionally fall outside excise duty, typically reserved for goods and services.
The court has asked the FBR and other involved parties to submit their responses, and the Attorney General has been notified due to the involvement of a federal statute. This case highlights an important legal discussion regarding the taxation of property transactions.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
