Lahore: Lahore High Court (LHC) Justice Jawad Hassan suspended the luxury tax notices sent by the Excise & Taxation (E&T) department to the residents of houses Larger than two canals, news sources reported.
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Reportedly, the said decision was taken by the judge while presiding over a case opposing notices forwarded to homeowners whose house span over 2+ kanals. Justice Jawad Hassan stated that, in general, the excise department has not observed the laws and regulations for tax collection; he further added that a fair trial is the right of every citizen and that the excise department should not rush in the matter of tax collection.
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While citing the Punjab government and others as respondents, including the E&T director general, the petitioner stated that the Excise Department had issued a PKR 6.5 million notice to the owner of the four-kanal home in the matter of luxury tax. In his petition, he stated that in 2014, the two-member bench of the Lahore High Court had annulled the notifications sent to over 500 applicants for the luxury tax and had directed the Excise Department to collect the tax in accordance with the prevailing rules and regulations.
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The petitioner further added that that the Excise Department violated the tax laws again, and that without following the rules and regulations, notifications were issued to the owners of four kanal residences with a luxury tax of PKR 3.6 million and a surcharge of PKR 2.9 million. It was highlighted that actions against the Excise and Taxation department for violating the reguations should be initiated, and the execution of the notifications should be halted until the final judgement is reached.