KARACHI: A customs appellate bench of High Court of Sindh (SHC) comprising Justice Munib Akhtar and Justice Omar Sial on Friday reserved judgment in dozens of petitions challenging the imposition of Regulatory Duty at a rate of 30 per cent on more than 400 items.
Barrister Khalid Javed Khan and a lawyer from Franklin Law Associates appearing for the petitioner submitted final arguments.
They argued that even Prime Minister alone cannot levy a new tax. It shall be the sole and joint decision of the cabinet, they submitted adding that such levy was in violation of Rules of Business too and was aimed at nullifying the judgment by the apex court.
The new tax is badly affecting the import, export and instead of increasing income of the government resulted in massive loss in revenue to the government besides affecting local businesses based on imported materials, the counsel for petitioners ontended concluding their arguments.
Member Legal, FBR Dr Tariq addressed the court on Thursday defending imposition of the new tax.
The Member Legal submitted that the measure was aimed at increasing the revenue of the federal government which were depleted to a dangerous level. He said that in other countries too, the Minister In-charge has the power to impose such taxes.
The bench after detailed hearing and extensive arguments by both the sides reserved the judgment on Friday.