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LHC Suspends Tax Notices Houses Larger than 2 Kanals

Justice Jawad Hassan of the Lahore High Court (LHC) postponed the luxury tax notices sent by the Excise & Taxation (E&T) department to inhabitants of mansions larger than two canals, according to news reports.

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Reportedly, the court presiding over a case challenging the sending of notices to homeowners whose homes exceed two kanals made this ruling.

Citing the Punjab government and others, including the E&T director general, as respondents, the petitioner asserted that the Excise Department had issued a PKR 6.5 million notice to the owner of the four-kanal home in the matter of luxury tax.

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In his plea, he asserted that in 2014, a two-member bench of the Lahore High Court nullified the notifications sent to more than 500 applicants for the luxury tax and ordered the Excise Department to collect the tax in line with the applicable rules and regulations.

It was emphasized that actions should be taken against the Excise and Taxation department for violating the regulations, and that the notices should not be executed until a final verdict is reached.

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