In a session of Lahore High Court allegation was placed on Punjab Government that it does not have any constitutional right to impose Luxury Tax, by advocate Azhar Siddique, since it is against the clauses of the constitution.
Luxury tax has only been levied on certain residential communities while the commercial areas and other posh residential societies are free of any such tax; therefor the luxury tax should be termed as against the constitution and should be removed.
General Advocate Mustafa Ramday assured the court that the government is in full position to levy the taxes and has full constitutional rights. He further said that no action shall be taken against the non-depositors of the luxury tax till the final decision of the requisitions.
Justice Nasir Saeed Sheikh refused to grant stay orders and asked Ramday to explain the reasons in written on next date of trial about this rule of the Punjab Government. The next date of trial is scheduled to be at 10 September 2013.