The Lahore High Court Friday declared 10 percent education cess imposed on clubs as illegal.
Justice Mirza Viqas Rauf passed these orders while allowing various petitions filed by Gymkhana and other clubs challenging imposition of education cess.
Earlier, the petitioners’ counsel Khawaja Saeeduz Zafar arguing before the court submitted that the government was already receiving 16 percent sales tax from the clubs.
But the Punjab government also imposed 10 percent education cess on clubs.
He said that the cess falls under definition of tax and only parliament was empowered to impose it. He said the cess was illegal as the provincial government was not empowered to impose it.
However, the court was apprised on behalf of the provincial government that it imposed the cess through finance bill and the provincial government was empowered to impose the cess.
The court after hearing detailed arguments declared the cess void.
