Sales tax on electricity bills in Pakistan – High Court order
Published at : August 04, 2022
Legal Drafting website:
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Minimum sale tax of Rs. 3000/- per month has been imposed on retailers/ small shopkeepers through monthly electricity bills. The Sale Tax imposed through electricity bills may be increased to Rs. 6000/- per month, Rs. 5000/- per month and Rs. 10,000/-, 20,000/- per month.
The Sales Tax so imposed is not fixed and may depend on different things like what is the total consumption of electricity and what does it cost. Furthermore, there is another factor involved for calculating the ratio of sales tax on electricity bill, is that whether the retailers / small shopkeepers are appearing in Active Tax Payer List (ATL) or not. If they are appearing in Active Tax Payer List, they will be charged less sales tax however if they are not appearing in ATL, they will be charged double of the sales tax. Following is the chart explaining the ratio of sales tax imposed on retailers:
The imposition of sales tax on lawyers community through electricity bills have been challenged by High Court Bar Association, Rawalpindi by way of filing a Writ Petition No. 2148/2022, titled as “High Court Bar Association Rawalpindi Versus Federation of Pakistan etc” before Lahore High Court, Rawalpindi Bench Rawalpindi, which was allowed by his lordship Mr. Justice Tariq Saleem Sheikh J vide order dated 28-07-2022 and the Honourable Court declared that lawyers are not subject to levy of sales tax leviable on retailers.
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https://www.waseeqanaveesi.com/
Minimum sale tax of Rs. 3000/- per month has been imposed on retailers/ small shopkeepers through monthly electricity bills. The Sale Tax imposed through electricity bills may be increased to Rs. 6000/- per month, Rs. 5000/- per month and Rs. 10,000/-, 20,000/- per month.
The Sales Tax so imposed is not fixed and may depend on different things like what is the total consumption of electricity and what does it cost. Furthermore, there is another factor involved for calculating the ratio of sales tax on electricity bill, is that whether the retailers / small shopkeepers are appearing in Active Tax Payer List (ATL) or not. If they are appearing in Active Tax Payer List, they will be charged less sales tax however if they are not appearing in ATL, they will be charged double of the sales tax. Following is the chart explaining the ratio of sales tax imposed on retailers:
The imposition of sales tax on lawyers community through electricity bills have been challenged by High Court Bar Association, Rawalpindi by way of filing a Writ Petition No. 2148/2022, titled as “High Court Bar Association Rawalpindi Versus Federation of Pakistan etc” before Lahore High Court, Rawalpindi Bench Rawalpindi, which was allowed by his lordship Mr. Justice Tariq Saleem Sheikh J vide order dated 28-07-2022 and the Honourable Court declared that lawyers are not subject to levy of sales tax leviable on retailers.
Please subscribe our channel “Seekh Laitay Hain” for more informative videos on law and property matters. Thanks
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