ISLAMABAD: The Islamabad High Court (IHC) has summoned the Federal Board of Revenue (FBR) and the Attorney General of Pakistan to comment on the Federal Excise Duty (FED) levied on the transfer or allotment of immovable properties by builders and developers.
The Defence Housing Authority (DHA) Islamabad is challenging the validity of Table-III of the First Schedule of the Federal Excise Act 2005.
The respondents include the Federation of Pakistan through the Secretary Revenue, the Chairman of the FBR, and the Commissioner of the Large Taxpayer Office in Islamabad.
DHA Islamabad, as a local authority managing land transactions and services for its residents, contends that the recent amendment imposes Excise Duty on property transfers without an update to the Act’s charging section.
They argue that Excise Duty should apply solely to goods and services, asserting that property transfers do not qualify as such.
The DHA’s counsel stated that immovable property should not be classified as goods, making Table-III ultra vires the Act.
The IHC noted, “Notice to the respondents. As the legality of a federal statute is being challenged, a notice under Order 27-A CPC will also be issued to the Attorney General for Pakistan.
