“Accordingly CVT was abolished through the Finance Act 2010 as charge and levy of CVT became a provincial subject. Different provinces have started levy and collection of CVT on immoveable property through their respective Legislation”—FBR’s Circular 3 of 2012 explaining provisions relation to Capital Value Tax (CVT)

The Ministry of Law and Justice has informed the Federal Board of Revenue that the tax authorities are not legally empowered to collect the Federal Excise Duty (FED) on all allotment and transfer of commercial and residential plots/buildings within the jurisdiction of federal Capital—‘Allotment/ transfer of plots with Capital: Tax Authorities are not competent to collect FED: Law Ministry’, The Business Recorder, November 27, 2010

“Entry 50 was the subject matter of discussion in a number of appeals before a Division Bench of which one of us (Shahid Karim, J.) was a member and it was held that tax on capital value of immovable property was beyond the legislative competence of the Parliament and was within the power of the Provincial Assemblies to legislate upon”—Commissioner of Inland Revenue v Muhammad Osman Gul [ICA No.35908 of 2023] [(2024) 129 TAX 364 (H.C. Lah.)]

“The Eighteenth Amendment brought a change to and amended Entry 50 in the Fourth Schedule (Federal Legislative List) of the Constitution of the Islamic Republic of Pakistan. As a consequence thereof, the Federation and all Cantonment Boards lack competence, power, and jurisdiction to levy, charge, impose and recover any or all tax(es) on any immovable property, including, but not limited to, tax on the annual rental value of immovable property”—M/S MILLENNIUM MALL MANAGEMENT CO v PAKISTAN & others [(2024) 129 TAX 505 (H.C. Kar.)]

In the Finance Bill 2024 the Federal Board of Revenue (FBR) proposed federal excise duty [FED] on transfer of immoveable property and National Assembly, acting as a rubber stamp, passed it in utter violation of the Constitution of Islamic Republic of Pakistan [“the Constitution”]. It proves beyond any doubt that while FBR is incompetent as far as tax legislation is concerned, our elected members are least concerned to abide by the supreme law of the land under which they have taken their oaths and vowed to uphold it supremacy. They have proved to be the worst violators of the Constitution.

The cases cited above and many others quoted and relied upon therein or reported elsewhere have explained in great detail and in unequivocal terms that after the Constitution........

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