Islamabad, Sep 30: DHA Challenges FED on Property Transfers in Finance Act 2024.The matter of the Defence Housing Authority (DHA) Islamabad regarding the imposition of Federal Excise Duty (FED) on the transfer or assignment of immovable properties under the Finance Act 2024 has been taken up by the Islamabad High Court (IHC).
In this context, the Attorney General of Pakistan and the Federal Board of Revenue (FBR) have received notices from the IHC. The First Schedule’s Table III has been challenged by the Defence Housing Authority (DHA) in Islamabad.
The Federal Excise Act of 2005 was passed. The petitioner argued that the Excise Duty on transfer or allocation of properties by developers/bidders has been levied through the aforementioned amendment in the ruling of the Chief Justice of the IHC in writ petition number 2672 of 2024.
It was also argued that this could not have been done in the absence of a similar adjustment to the charging provision of the Federal Excise Act, 2005. It was argued that the relevant transfer does not fit into any of the aforementioned categories and that the excise duty is applicable to goods and/or services.
The attorney made the argument that since immovable property is outside the purview of the products, Table III is outside the scope of the Act.
“Notice to Respondents.” The Attorney General for Pakistan would also receive notice under ruling 27-A CPC since the Federal Statute’s provisions have been contested, the IHC ruling stated.
