PTBA urges CJP to help resolve high-profile pending tax matters

KARACHI: The Pakistan Tax Bar Association (PTBA) has formally approached the newly appointed Chief Justice of Pakistan, Justice Yahya Afridi, for the resolution of the high-profile pending tax matters, including super tax, Capital Value Tax, and Levy of 7E.

In a comprehensive letter addressed to the Chief Justice, PTBA drew attention to several high-profile pending tax matters including challenges to the 4B and 4C super tax, Section 7E levy, and Capital Value Tax.

A key proposal presented by PTBA involves integrating decided tax cases into an automated judicial system platform. “This integration would enable courts and tribunals to expedite similar cases at the ‘Kacha Peshi’ stage, significantly reducing pending tax litigation,” the letter stated.

The Association also raised concerns about the recent Tax Laws Amendment Act, 2024, saying that the appellate remedies available under the income tax and sales tax laws have been redefined and order of the Commissioner Appeals in case of demand less than Rs20 million can now only be challenged in Reference before the High Courts, coupled with mandatory payment of 30% if the stay is to be sought and Rs50,000 reference fee has also been imposed on the said filing.

PTBA said that this would enhance the burden on the High Courts infringe on the fundamental rights of the taxpayer to an expeditious and impartial hearing and restrict the inherent power of the Courts to grant stay at their discretion.

Meanwhile, PTBA has requested inclusion in a recently formed committee by the Chief Justice for monitoring tax-related cases, offering their expertise in developing mechanisms for expedited case disposal. “These reforms are crucial for improving Pakistan’s economic crisis and encouraging both foreign and local investment,” PTBA said.

Copyright Business Recorder, 2024