LHC bars FBR from sales tax collection prior to registration
Thereby, the FBR has been barred from collecting sales tax on its own.
LAHORE (Dunya News) – The Lahore High Court (LHC) on Wednesday made it mandatory for the Federal Bureau of Revenue (FBR) to register businessmen before collection of sales tax, and termed it as ‘illegal’ under the Sales Tax Act, 1990.
A two-member bench of the LHC announced the reserved judgment, and declared that provision 3 of the Sales Tax Act could only be invoked against any businessmen after his/her registration.
Thereby, the FBR has been barred from collecting sales tax on its own.
