FBR tax on services is illegal, rules SHC

KARACHI (92 News) – The Sindh High Court (SHC) declared that the collection of tax by the Federal Board of Revenue (FBR) on services is illegal. A two-member bench led by Justice Muneeb Akhtar pronounced judgment on 33 petitions filed against the FBR for collecting tax on services. The court ruled that after the 18th Amendment, the provinces, not the Federation, were authorized to collect the tax on services. The court also nullified the notices issued under the Federal Excise Act 2005. In addition, the court declared the Sales Tax Ordinance 2000 as illegal. The parties could appeal against the verdict till June 30.