IHC halts FBR tax recovery under Tax Laws Ord, 2025
ISLAMABAD: In a major development, Islamabad High Court (IHC) has stopped the Federal Board of Revenue (FBR) from immediate tax recovery against taxpayers under the controversial Tax Laws (Amendment) Ordinance, 2025.
In this regard, IHC has issued an order on Tuesday in favour of the private limited companies (petitioners).
The National Assembly Standing Committee on Finance has also categorically conveyed to the Federal Board of Revenue (FBR) that the government has bypassed Parliament for promulgating Tax Laws (Amendment) Ordinance, 2025, and urgently communicated ordinance to the FBR's field formations for recovery from taxpayers.
Tax laws bill: NA panel defers Sec 114C until FBR system overhaul
According to the order of the IHC, the court has issued notices to the FBR to submit comments and meanwhile, no coercive measure to be taken by the FBR against the petitioners.
The petitioners have requested the IHC to declare that the Tax Laws (Amendment) Ordinance 2025, promulgated on May 2, 2025, as Ultra Vires of the Constitution and void ab initio.
IHC should declare that sections 138 (3A), 140(6A), 175 C of the Income Tax Ordinance, 2001 (as amended), and section 27 (4) of the Federal Excise Act, 2005 are inconsistent with Articles 4, 8, 10-A, 18, and 25 of the Constitution, hence void.
IHC should suspend the operation of impugned Tax Laws (Amendment) Ordinance, 2025 dated 02.05.2025, till pendency of this Writ Petition and restrain the Respondents (FBR) from enforcing or taking any coercive action under the impugned provisions till pendency of this Writ Petition, petitioners added.
Copyright Business Recorder, 2025
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