Section 7E tax on property declared unconstitutional by court
Key takeaways
- A two-member bench comprising Chief Justice Amin-ud-Din Khan and Justice Ali Baqar Najafi heard the case on Thursday.
- During the hearing, the court was informed that Section 7E had been inserted into the Income Tax Ordinance through the Finance Act, 2022.
- The Peshawar High Court and Balochistan High Court had declared Section 7E unconstitutional and struck it down, while the Islamabad High Court had declared subsection 2 of the provision unconstitutional.
Why this matters: local context for readers following news across Pakistan and the region.
Add ARY News on Google AAResize ISLAMABAD: The Federal Constitutional Court has declared the controversial Section 7E of the Income Tax Ordinance, 2001, unconstitutional and void in its entirety, while also ruling that all actions, notices, and proceedings initiated by the Federal Board of Revenue (FBR) and the Revenue Division under the provision are unlawful and ineffective.
A two-member bench comprising Chief Justice Amin-ud-Din Khan and Justice Ali Baqar Najafi heard the case on Thursday. The court issued a written order after announcing its short judgment.
During the hearing, the court was informed that Section 7E had been inserted into the Income Tax Ordinance through the Finance Act, 2022. However, conflicting judgments had been delivered by various high courts across the country regarding the provision.