SC annuls PM's notification for levy tax increase

SC annuls PM's notification for levy tax increase

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Supreme Court has nullified notification of increased imposition of levy tax as a verdict reserved earlier was announced today on plea filed by private companies, reported Thursday.

Different private companies; Mustafa Impex Karachi, SSS Enterprises Karachi, Fact International Karachi, Broadways Karachi, M. A. Enterprises Karachi, Bulash Enterprises Karachi and others had challenged the government’s notification of increase in levy tax.

A three member bench headed by Justice Saqib Nisar and comprising of Justice Iqbal Hameedur Rahman and Justice Maqbool Baqar heard the case.

The companies import either cellular phones or textile products and were enjoying some tax exemption until the government either withdrew or hiked the tax rate.

The court stated that only the federal government, comprising of federal ministers and the premier had authority to increase or decrease the tax. No notification that is issued by the Prime Minister single handedly stands upto the prerequisites of the law.

The court stressed approval of any tax revision and an ordinance by the cabinet and before presentation in the Parliament.

The cabinet must be given appropriate time to deliberate over any bill.

A minister or secretary could not exercise government’s right all by himself, the court stated.

Prime Minister’s authority to bypass cabinet under clause 2 of section 16 of the constitution was also declared against the law.

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