Punjab Immoveable Property Tax Act challenged in supreme court

[Naveed Yaseen]

The Supreme Court of Pakistan advocate, Mohammad Azhar Siddique, on Monday filed a constitutional petition challenging Section 5-A of the Punjab Immovable Property Tax Act, 1958, saying the assessment based the provision was illegal but unconstitutional.

The petitioners in the instant writ petition were Fareeed-ud-din Nasir and five others, whereas the Government of Punjab through the Secretary Excise, the Director General Excise and the Taxation and Excise and Taxation Officer had been the respondents in the petition.

The counsel of petitioners, Mohammad Azhar Siddique, challenged sealing of their shops besides Section 5-A of the Property Tax Act 1958. The petitioners possessed shops No 1,2,3,7 and 8 located in Sarjit Building, Lakshmi Chowk, Lahore and they were give possession of the respective shops following Compensation and Rehabilitation of Displaced Person Act, 1958 through an Evacuee Trust case at Settlement Department.

The petitioners were of the view that the dispute of their ownership was still in litigation in the courts. They contended that until the case of their ownership was settled, the Punjab government owned the shops and the property was exempted of property tax under Section 4 of Punjab Immovable Property Tax.

They said their business had been closed without any notification or assessment, and both the acts were against their rights according to Articles 18 and 19 of the Constitution.

The petition further stated that the petitioners were sent notice of property tax worth Rs 40,00,000 while Property Tax Act stated in Section 3 (6) that property tax could be imposed only on the owners of lands and properties. The petition further stated that the petitionersí possession of the shops was not illegal. The counsel of the petitioners argued that Section 5-A of Property Tax Act 1958 was in contradiction of the Constitution of Pakistan and it should be declared null and void.

An application for suspension of operation of Section 5-A and recovery proceedings had also been separately filed.

http://www.thenews.com.pk/daily_detail.asp?id=198560