Islamabad:
The Supreme Court of Pakistan has suspended the Lahore High Court’s order related to the imposition of further tax on feed mills, granting temporary relief to the feed, poultry, and livestock sectors.
The suspension came during the hearing of petitions challenging the applicability of “further tax” on feed manufacturers, who had argued that the levy was legally questionable and economically damaging for an already stressed agri-based industry.
According to Shahid Jami, Chairman Tax Forum, the Supreme Court’s intervention provides interim relief to the sector, but the matter is still sub judice and will be decided on legal merits after detailed arguments.
“The Supreme Court has suspended the Lahore High Court’s order for now. This does not mean the case is decided. The issue of further tax on feed mills will be examined in detail, and stakeholders should await the final verdict,” Shahid Jami stated.
Industry representatives maintain that the imposition of further tax increases the cost of compound feed, which ultimately translates into higher production costs for poultry, dairy, and livestock farmers. They argue that such measures adversely affect food prices and competitiveness of the sector.
Legal experts note that the case also raises broader questions regarding tax classification, exemptions applicable to agricultural inputs, and consistency in tax policy.
The Supreme Court is expected to resume hearings after issuance of notices to relevant authorities, including the Federal Board of Revenue (FBR).