Imposition of taxes

Petitioner was owner of stone crusher plant and was aggrieved of levy of tax/fee by Tehsil Municipal Administration on transportation of sand and crushed stone

Validity

Business of petitioner was not regulated by any of the local government either under provisions of erstwhile North Western Frontier Province Local Government Ordinance, 2001 or Khyber Pakhtunkhwa Local Government Act, 2013

Petitioner placed on file, decision taken by Local Government Council regarding imposing of tax by Tehsil Municipal Officer on mineral products which tax was declared to be not in accordance with Third Schedule, Part-III of Khyber Pakhtunkhwa Local Government Act, 2013

When decision was taken regarding one district, then same was equally applicable to similar activities being carried out in another district

Activities being carried out by petitioner were at par regarding which decision had been taken earlier

High Court declared that Tehsil Council had no authority to levy any tax/fee on production of stone, sand/bajri

High Court declared notification in question as without lawful authority

Constitutional Petition was allowed in circumstances.

Petitioner was owner of stone crusher plant and was aggrieved of levy of tax/fee by Tehsil Municipal Administration on transportation of sand and crushed stone

Validity

Business of petitioner was not regulated by any of the local government either under provisions of erstwhile North Western Frontier Province Local Government Ordinance, 2001 or Khyber Pakhtunkhwa Local Government Act, 2013

Petitioner placed on file, decision taken by Local Government Council regarding imposing of tax by Tehsil Municipal Officer on mineral products which tax was declared to be not in accordance with Third Schedule, Part-III of Khyber Pakhtunkhwa Local Government Act, 2013

When decision was taken regarding one district, then same was equally applicable to similar activities being carried out in another district

Activities being carried out by petitioner were at par regarding which decision had been taken earlier

High Court declared that Tehsil Council had no authority to levy any tax/fee on production of stone, sand/bajri

High Court declared notification in question as without lawful authority

Constitutional Petition was allowed in circumstances.

Legislature has vast powers to levy and impose tax on income of persons, pursuant to Entry No.47 of Federal Legislative List of Fourth Schedule to the Constitution and to prescribe tax rates thereon by introducing Bill in terms of Art. 73 of the Constitution

Such legislation has to undergo test of Constitutional constraints

Legislative competence of imposing taxes is also subject to scrutiny by High Court under Art. 199 of the Constitution and by Supreme Court under Art. 184 of the Constitution, particularly if a levy or enactment has been challenged for being discriminatory, confiscatory or violative of fundamental rights as guaranteed under the Constitution

Concept of absolute authority to impose tax by rulers on their subjects, without having any representation of people in such legislation, is no more available under the Modern Democratic System of Governments, which are run by elected representatives of people under their respective Constitutions

Unbridled powers and authority to impose tax arbitrarily, without having any rationale or reasonableness, is now being regulated under Constitutional restraints, whereby taxes are to be imposed reasonably, without discrimination and in such manner that those may not encroach upon fundamental rights of a person as guaranteed under the Constitution.

Legislature has vast powers to levy and impose tax on income of persons, pursuant to Entry No.47 of Federal Legislative List of Fourth Schedule to the Constitution and to prescribe tax rates thereon by introducing Bill in terms of Art.73 of the Constitution

Such legislation has to undergo test of Constitutional constraints

Legislative competence of imposing taxes is also subject to scrutiny by High Court under Art.199 of the Constitution and by Supreme Court under Art.184 of the Constitution, particularly if a levy or enactment has been challenged for being discriminatory, confiscatory or violative of fundamental rights as guaranteed under the Constitution

Concept of absolute authority to impose tax by Rulers on their subjects, without having any representation of people in such legislation, is no more available under the Modern Democratic System of Governments, which are run by elected representatives of people under their respective Constitutions

Unbridled powers and authority to impose tax arbitrarily, without having any rationale or reasonableness, is now being regulated under constitutional restraints, whereby taxes are to be imposed reasonably, without discrimination and in such manner that those may not encroach upon fundamental rights of a person as guaranteed under the Constitution.