IHC seeks govt reply over withholding tax hike on goods transportation

The Islamabad High Court (IHC) has sought responses from the federal government, the Federal Board of Revenue (FBR) and other respondents on a petition challenging the increase in withholding tax (WHT) on goods transportation from 6pc to 7pc through the Finance Act, 2026. The petitioners argue that the enhanced WHT is discriminatory, particularly in view of the concessional tax regime available to oil tanker contractors under the Second Schedule of the Income Tax Ordinance.

The court fixed the matter for further hearing on Sept 17, with the petition also challenging the constitutional validity of statutory provisions.

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