ISLAMABAD: The Sindh High Court (SHC) has issued a restraining order for not taking any coercive measure against taxpayers for recovery under section 7E (tax on deemed income basis) of the Income Tax Ordinance, 2001, for the period from July 1, 2022, to June 30, 2023, subject to payment of 50 percent tax liability.

The SHC has issued an order (CP No D-5127 of 2023) on Monday.

“Subject to the payment of 50 per cent liability under section 7E of the Income Tax Ordinance 2001, no coercive action to be taken against the petitioner under section 7E for the period from July 1, 2022 to June 30, 2023,” the SHC’s order stated.

According to the order, the matter pertains to Section 7E of the Income Tax Ordinance, 2001 where this Court has already passed a detailed judgment, against which CPLAs being CP No 1442-K to 1460-K of 2022, etc, were preferred before the Supreme Court, which petitions are pending and the counsel draws Court’s attention to page 241, where an order (dated March 22, 2023) passed by the Supreme Court of interim in nature shows that the Supreme Court was pleased to order that the petitioners/taxpayers should make payment of 50 percent of the liability, pending adjudication of those petitions before their matter is finally heard and decided.

As per counsel, October 31 being the last day for filing tax returns, and in the given circumstances where the Supreme Court has provided a relief of like nature for the petitioners/taxpayers for the last year subject to the payment of 50 per cent of the liability, similar relief be extended to the petitioner for the current tax year also.

Qazi Ayazuddin Qureshi, assistant attorney present in court waives notice, receives copy, and extends his no objection to the disposal of the instant petition in the above terms.

The SHC ordered that subject to the payment of 50 per cent liability under section 7E of the Income Tax

Ordinance 2001, no coercive action to be taken against the petitioner under section 7E for the period from July 1, 2022, to June 30, 2023. In these terms, the instant petition stands disposed of, SHC added.

Copyright Business Recorder, 2023

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Aamir Oct 31, 2023 10:36am
This is a totally unfair tax on income that is actually not there. It's more like a wealth tax on a particular sector. Wealth taxes are never productive and encourage flight of capital and assets abroad. Please go after non taxpayers and tax hidden incomes and stop such harassment of declared wealth on which income taxes have already been paid.
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