KARACHI: Karachi Tax Bar Association (KTBA) has requested the Chief Justice of Pakistan, Justice Yahya Afridi to include a representative of KTBA into committee formed by apex court on tax issues.
The request was made in a letter dated 15.11.2024. Text is as under:
Mr. Justice Yahya Afridi,
Honourable Chief Justice of Pakistan,
Islamabad.
SUBJECT: ACTION ITEMS REQUIRING URGENT ATTENTION
YOUR HONOUR:
We take this opportunity to congratulate you on your appointment as the Chief Justice of Pakistan on behalf of Pakistan Tax Bar Association (PTBA) having footprint in 32 cities across the country and diversified membership of 12,500 members comprising of Lawyers, Tax Practitioners and Chartered Accountants.
Since the current Executive Committee has taken over the charge of the affairs of PTBA, it has done so with a commitment to enhance the professional competence within the members and to collaborate with the Government to broaden the tax base and enhance the tax revenue up to the true potential of Pakistan’s economy.
In this connection, we had met with your predecessor and had discussed with him various matters of extreme importance. During the course of the meeting, we had highlighted various issues of extreme importance in terms of procedures, constitutional limitations and judicial practice in respect of tax and other revenue matters. In this connection, we feel it necessary to bring to your knowledge issues of paramount importance to be addressed for the ease of the litigants (taxpayers).
· Please note that currently the following are high profile pending tax matters which need resolution. For the sake of clarity, details of the same including the issues involved and the case numbers of such pending tax matters of public importance before the Honourable Supreme Court are as under:
4B super tax was challenged through Civil petition # 1529/2020 filed before Supreme Court.
4C Super tax was challenged through Civil Petition # 3401-L of 2023 against the Lahore High Court order and Civil Petition 3825-K of 2023 against the High Court of Sindh before the Supreme Court.
Levy of 7E was challenged through Civil Petition 1442-K /2022 before Supreme Court.
CVT ( Capital Value Tax ) section 8 was challenged through Civil Petition # 57/2023.
· Keeping in view of the recent steps taken towards automation of judicial system by the Supreme Court, we understand that if the revenue matters (tax and customs) which have been decided and have attained finality in respect of point of law and legal interpretation may be made available for all courts and tribunals by way of an integrated platform. By sharing this important information it would be possible for courts/tribunals, in case of similar issues, to dispose off such cases at the ‘Kacha Peshi’ stage. This would drastically minimize the pendency of tax and other revenue cases in the courts.
· In case of constitutional vires, if any High Court (or Constitutional Bench of a High Court) has decided a matter and which is subjudice before the Supreme Court with the interim order, then other High Courts (or Constitutional Bench of such High Court) should be directed to keep similar proceedings in abeyance till the decision of the Supreme Courts for the law of consistency. In addition, to allow for similar relief to the taxpayers, the Supreme Court may ensure that interim order so granted in matters of constitutional vires should operate in rem in order to give relief to the taxpayer.
· Territorial jurisdiction of Islamabad High Court in tax, corporate and other revenue matters may be defined in order to avoid any duplicity of proceedings before other High Courts and to ensure the sanctity of the territorial jurisdiction of the other High Courts.
· It may be directed that tax and other revenue matters should be disposed off in accordance with limitation provided under Article 199(4A) of the Constitution of Pakistan.
Through a new Tax Laws Amendment Act, 2024, 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 Rs.20 Million can now only be challenged in Reference before the Honourable High Courts, coupled with mandatory payment of 30% if the stay is to be sought and Rs. 50,000/- reference fee has also been imposed on the said filing. The reason why we have brought this in your knowledge is because this will enhance the burden on the High Courts and infringe the fundamental rights of the taxpayer to an expeditious and impartial hearing and restricts the inherent power of the Courts to grant stay at their discretion.
We realize that we have detailed an extensive list of items that we wish your Honor to consider. Yet, we are safe in the knowledge that your honor being a man of action will no doubt consider them as being imperative and being in line PTBA’s plan of action to improve Pakistan’s economic crisis and to encourage investors both foreign and local to invest in Pakistan. The above will also help in dispensing the justice in the cases that are pending in the courts, in a smooth and speedy manner.
In addition, it has come to our knowledge that you have formed a committee to monitor the tax related cases pending in Courts for its early resolution. We feel that Pakistan Tax Bar Association should be provided an opportunity to assist and be a part of the committee, to be able to assist the committee in designing a mechanism for early disposal of the pending tax cases.
We would be more than happy to meet your honor to discuss these matters at length.
Yours truly
Anwar Kashif Mumtaz Mohammad Rehan Siddiqui
President General Secretary
CC: 1. Justice Syed Mansoor Ali Shah
Senior Puisne Judge, Supreme Court of Pakistan
2. Justice Amin-Ud-Din Khan
Head of Constitution Bench, Supreme Court of Pakistan
3. Registrar, Supreme Court of Pakistan