The petitioner is a company incorporated under a Companies Ordinance, 1984. It has assailed the imposition of Professional tax on it by virtue of Notification No,429/T.O. Dated 19-7-1999 issued by the respondent Zila .Council, Sheikhupura. 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 Zila Council 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, who had yesterday sought time to examine this matter, and the learned counsel appearing on behalf of Zila Council, have not been able to advance any argument in response to the submission made by learned counsel for the petitioner.
3. In this view of the matter, I hold that the levy of a professional tax by the respondent Zila Council through the above-referred notification, on a Corporation such as the petitioner, is not Constitutionally permissible. This petition is, therefore, allowed.