ISLAMABAD: The Lahore High Court (LHC) has shown extreme displeasure over the fact that the Federal Board of Revenue (FBR) is exempted from paying court fees for filing tax references, but an ordinary litigant is paying Rs50,000 per reference, reflecting clear discrimination against citizens of Pakistan.
While deciding the case pertaining to the abolition of Commissioner Inland Revenue (Appeals) under the Tax Laws (Amendment) Act, 2024, the LHC, Rawalpindi bench declared that foregoing circumstances unequivocally demonstrate that the amendment in question is clogging the arteries of judicial system, obstructing the dispensation of justice and causing undue delays in other cases.
The LHC observed that it is pertinent to highlight that the FBR faces no financial barrier in filing tax references, as it is exempt from paying court fees, whereas, an ordinary litigant is required to pay Rs50,000 per reference. This results in a clear discrimination against the citizens of Pakistan, depriving them of equal access to justice, which will infringe the fundamental rights of public guaranteed under Articles 4, 10-A and 37(d) of the Constitution.
Plea challenging Tax Laws (Amendment) Act: LHC issues notices to ministry of law, FBR & AGP
It was also noted that the Ordinance prescribes the procedure of pecuniary jurisdiction in Appeals; first, before the Commissioner (Appeals), then before the Appellate Tribunal and thereafter a remedy can be availed before this Court in terms of Section 133 of the Ordinance by filing a Tax Reference. However, through the impugned amendment one forum of appeal has been taken away.
It is astonishing that the Ministry of Law and Justice in its reply mentioned that “over the years, and for various reasons, including arbitrary constitution of benches, inadequate number of benches, delay in fixation of cases and dispose of appeals, a substantial amount of revenue, to the tune of Rs2 trillion, is held up in litigation before the ATIR.
The object of reducing the number of appeals is to simplify expedite the appeal process, reducing administrative burdens and it will also lead to significant cost saving. The impugned provisions have been inserted with aim to discourage unnecessary or frivolous appeal, which will help streamline the process, and reduce burden, LHC quoted Law Division reply.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.