LAHORE: The Lahore High Court on Tuesday cancelled the recovery of luxury tax on houses of two kanals and above without due course of law.
Justice Jawad Hassan took up the petition against the tax notices. He ruled that the Excise and Taxation Department did not comply with the relevant rules for tax recovery.
He further said: “Fair trial is the right of every citizen. The Excise Department should not act hastily [against the petitioner].”
The citizens had challenged the 2014 imposition of a one-time luxury tax on big residential properties measuring two kanals and above by amending Section 8 of the Finance Act.
The petitioner, nominating the Punjab government and the tax collection body as respondents, told the court that he was served with an Rs6.5 million tax notice on a four-kanal house.
