In a significant development, the Islamabad High Court has issued a stay order against the implementation of the recently promulgated Tax Laws (Amendment) Ordinance, 2025.
The decision was made while hearing writ petition No. 1953/2025, filed by a group of concerned taxpayers challenging the legality and constitutionality of the ordinance.
The petitioners approached the Islamabad High Court seeking a declaration that the ordinance, promulgated on May 2, 2025, is ultra vires the Constitution and void ab initio. They further argued that specific provisions—namely Section 138(3A), Section 140(6A), and Section 175C of the Income Tax Ordinance, 2001 (as amended), as well as Section 27(4) of the Federal Excise Act, 2005—are in direct conflict with fundamental rights guaranteed under Articles 4, 8, 10-A, 18, and 25 of the Constitution of Pakistan.
The petitioners requested that the Islamabad High Court suspend the enforcement of these controversial provisions until a final verdict is reached in the matter. They also prayed the court to restrain the Federal Board of Revenue (FBR) and other respondents from initiating any coercive action under the disputed provisions during the pendency of the case.
Acting on the petition, the Islamabad High Court directed the FBR and all relevant authorities not to take any coercive measures against the petitioners until further notice. Moreover, the court ordered that the current writ petition be clubbed and heard jointly with writ petition No. 1815/2025, which raises similar constitutional questions.
“Meanwhile, no coercive measures shall be taken against the petitioners,” the order stated, reinforcing the court’s stance on protecting citizens’ rights while constitutional challenges are under judicial review.
This ruling by the Islamabad High Court marks a critical pause in the implementation of the tax recovery ordinance and highlights the court’s role in upholding constitutional safeguards amid growing concerns over arbitrary taxation policies.