The Lahore High Court (LHC) has ruled on the issue of collection of additional tax from ice factories for non-registration under the Sales Tax Act.
The Lahore High Court has ruled that ice factories do not need to pay extra tax on electricity and gas bills, ice is exempt from sales tax so they do not need to register.
Justice Raheel Kamran ruled on the petitions of the ice factories.
The decision said that under the Sales Tax Act, extra tax is levied to encourage registration. There is not a single provision in the Sales Tax Act that requires icebergs to be registered. Exceptions should also be imposed on manufacturers.
The court ruled that ice is tax-exempt and therefore does not need to be included in the FBR’s list of taxpayers.
It should be noted that the ice houses had challenged the 3% extra tax collection through electricity and gas bills. The petitioner said that we do not make taxable products so registration under the Sales Tax Act is not required.