RAO TARIQ ISLAM vs FEDERATION OF PAKISTAN through Ministry of Finance, Islamabad arts

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RAO TARIQ ISLAM VS FEDERATION OF PAKISTAN through Ministry of Finance, Islamabad arts. 7, 18, 23, 24 & 77---Tax, imposition of--- Object, purpose and scope---Tax cannot be expropriatory or confiscatory, which takes away a citizen's property without compensation or destroys business of taxpayer--- State is meant to serve the citizen and for running its affairs---attribute of charging tax is bestowed by art.7 of the Constitution---Tax can be levied by or under the authority of Parliament under art.77 of the Constitution---act of Parliament, levying a tax, was not to offend any of the fundamental rights guaranteed by the Constitution---Unreasonable taxing procedure, if destroys business, offends the right under art. 18 of the Constitution and an income tax taking away property without compensation offends arts. 23 & 24 of the Constitution. S.236-D---Federal Board of Revenue Act (IV of 2007), S.7---Constitution of Pakistan, Arts. 7, 77 & 199---Tax, imposition of---Amendment, vires of---Petitioners assailed amendment in S.236D of Income Tax Ordinance, 2001, fixing Rs.20,000/- as minimum slab for advance income tax to be collected of a person receiving services of or holding / arranging functions in marriage halls---Validity---Income tax was meant to be charged from citizens, who were earning income---Citizens who were not earning any income, deserved to be compensated by the State to meet their basic and essential requirement for living---Later class of citizens was already subjected to indirect taxes and was taxed through un-adjustable advance income tax, which could only be termed as expropriatory and confiscatory---Constitutional Courts had been observing judicial restraint from declaring such laws as ultra vires, for avoiding an impediment against State's tax collection system---Government was adamant to charge advance tax, ignoring its expropriatory and confiscatory character from the persons not liable to pay tax---Imposing an obligation of tax collection on private persons ignoring reasonability and prejudice to their business, could not be ignored by Courts, in judicial review---Citizens in tax net, who were burdened with obligation to withhold tax by declaring them an agent, were also required to be treated rationally and equitably---Putting extra burden of compliance which was not in normal course of business and that too without remuneration or concession in tax liability, needed to be revisited by Government as well as tax Administrators---Collection of an un-adjustable advance income tax from a person not liable to pay income tax or file income tax return, was without lawful authority and un-Constitutional---High Court referred the matter to Attorney General for Pakistan and Federal Board of Revenue for suitable amendments---High Court converted petitions into representations under S.7 of Federal Board of Revenue Act, 2007 and sent to the Chairman, FBR, for suitable amendment in Income Tax Ordinance, 2001---Constitutional petition was allowed, in circumstances.

RAO TARIQ ISLAM vs FEDERATION OF PAKISTAN through Ministry of Finance, Islamabad arts — 2023 PTD 223 LAHORE-HIGH-COURT-LAHORE

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