ISLAMABAD:The Supreme Court on Thursday issued notices to respondents over petitions filed against tax exemption for the Provincially Administered Tribal Areas (PATA).
A two-member SC bench comprising Justice Sajjad Ali Shah and Justice Ayesha A Malik heard the case pertaining to tax exemption for PATA areas. A local importer had claimed tax exemption after importing timber for Zhob. The tribunal and the high court had ruled in his favour, which was challenged by the Federal Board of Revenue (FBR) in the Supreme Court.
During the course of proceedings, FBR’s counsel Hafiz Ahsan Khokar argued that the high court in its decision had referred the previous 2003 decision of Supreme Court, but the apex court had given a new opinion in 2008.
He said according to the law, it was necessary to use the items in the same area in order to get tax exemption but in the present case, the importer could not provide evidence of using the wood locally.
The court after hearing arguments issued a notice to the importer and sought a reply.