Tax Laws Act 2024: Murder Of Unfettered Right To Justice
The Tax Laws (Amendment) Act, 2024, which was passed by the National Assembly on April 29, 2024, and received assent from the President of Pakistan on May 3, 2024, and later amended by Finance Act 2024, amounts to the murder of the inalienable, fundamental right of unfettered right to justice in tax disputes.
The tax laws, namely, Income Tax Ordinance, 2001, Sales Tax Act, 1990, and Federal Excise Act, 2005, presently provide the option to directly lodge an appeal with the high court against the order of the first appellate authority (Commissioner of Appeals) who can adjudicate cases where demand is up to Rs20 million. Beyond this amount, the appeal goes directly to the Tribunal. In the high court, for availing a stay order, the law stipulates there is a mandatory payment of 30% of the disputed amount. This is patently against Articles 4, 10A, 18, and 25 of the Constitution of Pakistan.
The first appellate authorities i.e. Commissioner Inland Revenue (Appeals) or Collector (Appeals) are not independent judicial forums as they operate under the administrative control of the Federal Board of Revenue (FBR) and can be transferred at any time to become a part of the field formation assigned for revenue collection targets. The Supreme Court of Pakistan and High Courts, in several cases, held that recovery of demand without a decision by an independent authority should not be made. Some of the cases where such a ruling to this effect were made are:
Laws As An Escape Route For The EliteThe amendments by the Tax Laws (Amendment) Act, 2024, that have been reinforced through the Finance Act 2024, violate the unfettered right of appeal, which is now bridled with heavy fees and a colossal payment of 30% of the disputed demand for availing stay at the high court level.
The right to unfettered justice is a constitutional guarantee for every citizen of Pakistan, which even the Parliament cannot curtail. Tax Laws (Amendment) Act, 2024, prepared by a team at FBR, vetted by the Ministry of Law, approved by the Cabinet, and finally adopted as law by the National Assembly, exposes their level of competence in understanding the Constitution.
The condition of heavy appeal/reference fee and payment of 30% of disputed demand to avail stay at high court level amounts to curtailment of the fundamental rights of citizens. The pecuniary limits of hearing appeals at the levels of Commissioners of Appeals and Tax Tribunal are, as expected, being widely abused by the FBR officials for collection of taxes through capricious orders, creating exorbitant demands.
It proves that the existing government, like its predecessors, has no respect for the supreme law of the land and judgments of the superior courts. It has violated with impunity Article 189 and Article........© The Friday Times
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