' The petitioner is a company incorporated under the Companies Ordinance, 1984. It has assailed the imposition of Professional tax on it by virtue of section 3 of the Punjab Finance Act, 1977 by the respondents. The first contention of learned counsel for the petitioner is that a tax on corporations can only be imposed and levied by the Federation. To support this contention he has referred to Item No,48 of Part I of the Federal Legislative List which reads as under: "Taxes on corporations"
' This contention does appear to be well-founded. The petitioner being a body corporate is a corporation and, as such, it follows that a tax on it cannot be levied by the province because the Federation, by virtue of the aforesaid entry in the Federal Legislative List, has the exclusive power to do so.
2. The learned Law Officer has not been able to advance any argument in response to the submission made by learned counsel for the petitioner.
3. I have already held in number of cases that the levy of a Professional tax by a province or by a local authority on a corporation such as the petitioner, is not constitutionally permissible. This petition is, therefore, also allowed.