FCC declares levy of additional tax on poultry feed mills ‘illegal’

Declaring the Lahore High Court (LHC) order null and void, the Federal Constitutional Court (FCC) on Tuesday ruled that the collection of four per cent additional tax from poultry feed mills was ‘illegal’, reported 24NewsHD TV channel.

In a seven-page judgment authored by Justice Aamer Farooq, the judge said that the government levied additional tax on mills’ owners for supplying feed to non-registered poultry farms. “The government collected the tax under the Finance Act, 2024,” the judge said, adding that according to a law, poultry farms had been exempted from paying the tax. “And when they have been given an exemption, it is not binding on them to get themselves registered,” the judge opined.

He further wrote that the law provided complete protection to non-registered poultry farms.

The LHC had ruled that the collection of four per cent additional tax from poultry feed mills was legal.

This prompted the mills’ owners to challenge the decision in the FCC.

Reporter: Amanat Gishkori