It may be noted that a leading food and confectionary group had challenged the withdrawal of concessional tax rate in the Lahore High Court through Muhammad Shahid Baig, Advocate Supreme Court.
It was submitted before the court that as per entry No. 1 of the 2nd Schedule of the Punjab Sales Tax on Services Act 2012, the services provided by marriage halls, marquees etc. were earlier subjected to 16% Sales Tax.
Later on, Government of Punjab issued a Notification on 24.02.2015 to declare that the taxable services of marriage halls, marquees etc. shall be charged to tax @ 5%.
Recently chairman PRA issued a notification on 02.05.2019, whereby, the earlier notification of the Government of Punjab dated 24.02.2015 was withdrawn. Resultantly, the marriage halls were again required to pay sales tax @16%.