SC directs companies to pay tax on water extraction

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ISLAMABAD: The Supreme Court on Friday directed the mineral water and beverage companies to pay the government taxes on extracting underground water for sale purposes.

A three-member bench of the apex court, headed by Justice Umar Ata Bandial, heard the duo motto case.

The court also sought a copy of legislation regarding the use of underground water.

During the course of proceedings, Justice Bandial observed that except Sindh, all three provinces had submitted their reports regarding extraction and use of underground water.

He remarked that the Sindh government did not submit proposals yet while the federal government had only submitted the notification.

The Islamabad advocate general said that as many as 42 meters were installed in the federal capital, adding that the federal cabinet would approve the legal draft after completion of the budget session in the parliament.

The Punjab advocate general said that the provincial government had suggested imposing one rupee tax per litre on service stations and five-star hotels.

Justice Bandial remarked that the court had formed the committee to save water not to punish anyone.

The court directed that all industries pay tax on water usage and adjourned hearing of the case for two weeks.

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