LHC exempts lawyers from paying sales tax on their electricity bills

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LAHORE: The Lahore High Court has given a big relief to lawyers as the legal fraternity will be exempted from paying sales tax on the electricity bills of their offices. LHC Justice Tariq Saleem Sheikh on Saturday released a 3-page judgement on the petition filed by the Lahore High Court Bar Association. According to the judgement, government cannot levy sales tax on electricity bills of the lawyers’ offices as lawyers do not fall in the ‘retailers’ category. It explains that retailer is a person who sells commodity to the people, but lawyers provide legal services to their clients, they do not sell commodities. The government has been directed to withdraw sales tax on the July electricity bills of the offices of the lawyers. The court has asked the lawyers to contact concerned commissioner inland revenue in order to provide the latter with specific information regarding exemption of sales tax on the power tariff of their offices. The judgement directs the authorities to refund the amount that has already been deducted under the head of sales tax to the lawyers. The LHCBA has challenged the Section 3 of Sales Tax Act in the Lahore High Court. DNA