Islamabad: The Islamabad High Court (IHC) has responded to a petition by the Defence Housing Authority Islamabad (DHAI) challenging the imposition of Federal Excise Duty (FED) on property transfers and allotments, issuing notices to the Federal Board of Revenue (FBR) and the Attorney General for responses.

According to Zameen.Com, DHAI is contesting the application of FED to property transactions following a recent amendment. The organization argues that “immovable property” should not be subject to FED as it does not constitute “goods” under the Federal Excise Act of 2005. The petition specifically points out that the charging section of the act does not include immovable property within the scope of excisable goods.

The legal challenge focuses on whether the scope of the act extends to immovable property transactions, traditionally exempt from excise duties, which are usually applicable to goods and services. The IHC’s notice compels the FBR and other stakeholders to submit their perspectives, underlining the significance of this case in clarifying the tax regime on property transactions in the context of federal statutes.