Provinces have no power to impose sales tax on CAA, says SC

ISLAMABAD: A three-judge bench of the apex court has upheld the Sindh High Court’s four years old order wherein it had declared that the CAA was not entitled to pay sales tax to the Sindh government under the Sindh Sales Tax on Service Act 2011.

The bench, headed by Justice Mushir Alam and comprising Justice Qazi Faez Isa and Justice Sardar Tariq Masood, gave the verdict while hearing the petition filed by the Sindh government and Sindh Revenue Department.

Justice Qazi Faez Isa who authored the 47-page verdict observed that the Constitution is not to be interpreted narrowly or restrictively and advised such approaches should be avoided.

“While the provincial legislatures are independent, they must operate within the sphere allotted to them and within their prescribed limit. Neither the federation nor the provinces should invade upon the rights of the other nor encroach on the other’s legislative domain”, he observed.

The court observed that the CAA performs functions in the federal legislative list and is also a federal regulatory authority.

“The functions and regulatory duties performed by the CAA are within the exclusive sphere of the Federal Legislature and the appellants (Sindh government authorities) cannot impose sales tax on the purported services provided by the CAA”, read the judgment.

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