ISLAMABAD     -   The IHC Thursday issued notices to the federation and FBR in a petition filed against the increase in token tax of vehicles. A single bench of IHC comprising Chief Justice of IHC Justice Athar Minallah conducted hearing of the petition and also summoned excise and taxation officer Islamabad to appear before the court in person on 26 November.

In this matter, Raja Shujaat Ali Abbasi, a resident of Islamabad, moved the court through his counsel Chaudhary Abdur Rahman Nasir Advocate and challenged the amendment in motor vehicle taxation act 1958.  He said in the petition that the federal government in its referred notification fixed the lifetime token tax to the vehicles up to 1000cc while exempting the luxury cars from above 1000cc onward at their choice to deposit token tax on yearly basis without any restriction of depositing the token tax for life time.

According to the petition, “The respondents have imposed the Professional Tax, Income Tax on the token tax has varied the amounts for filer and non-filer which is itself unjust and illegal.” It added that the amount of life token tax is mentioned as Rs10,000 in the schedule of payment whereas the respondents are receiving an amount of Rs31,000 from the petitioner and public unlawfully. It said that the petitioner owns a vehicle Cultus 1,000cc and the petitioner is being illegally forced to deposit the life time token tax against the will and wishes of the petitioner unjustly and discriminately. Therefore, he prayed to the court that the aforementioned notification to the extent of amending the token tax schedule may be set aside and the respondents may be prohibited to collect token tax as per new rates and schedule from the petitioner.