The Islamabad High Court has issued notices to the federation and Federal Board of Revenue (FBR) in a petition filed against an increase in token tax of vehicles.
A single bench of IHC comprising Chief Justice Athar Minallah heard the petition and also summoned excise and taxation officer Islamabad to appear before the court in person on November 26.
In this matter, Raja Shujaat Ali Abbasi, a resident of Islamabad, moved the high court through Advocate Chaudhary Abdur Rahman Nasir, challenging the amendment in Motor Vehicle Taxation Act 1958.
The petitioner cited that Secretary Finance will represent the federation of Pakistan and an excise and taxation officer will answer for the Chairman FBR and excise and taxation department Islamabad as respondents.
The petitioner contended that the respondents issued the notification dated June 30, 2019 amending the West Pakistan Motor Vehicles Taxation Act 1958 revising the schedule of token taxes which is unjust, discriminatory and violative of fundamental rights and the Constitution of Pakistan.
He added that the federal government, in its referred notification, fixed the lifetime token tax to vehicles up to 1000cc while exempting the luxury cars from above 1000cc onward at their choice to deposit token tax on a yearly basis without any restriction of depositing the token tax for lifetime.
According to the petition, “The respondents have imposed the Professional Tax and Income Tax on the token tax with varied amounts for filer and non-filer which is in itself unjust and illegal.” It added that the amount of lifetime token tax is mentioned as Rs. 10,000 in the schedule of payment whereas the respondents are receiving/charging an amount of Rs. 31,000 from the petitioner and the public.
The petitioner submitted that he owns Cultus Car 1,000cc and is being forced to deposit the life-time token tax against his will and wish.
Therefore, he asked the court that the aforementioned notification should be set aside and the respondents should be prohibited to collect token tax as per new rates and schedule from the petitioner and citizens of Pakistan by suspending the operation in the best interest of justice.