Pakistan Grants Tax Exemption to Judges of Higher Courts

Pakistan Grants Tax Exemption to Judges of Higher Courts

Karachi, January 10, 2024 – Pakistan has introduced income tax exemptions on various allowances granted to judges of higher courts during the tax year 2024.

The Federal Board of Revenue (FBR), the country’s apex tax collection agency, has revised the Income Tax Ordinance, 2001 to facilitate this exemption.

Under the updated ordinance, judges serving in the Supreme Court of Pakistan and High Courts are now eligible for tax exemption on perquisites, benefits, and allowances received during the tax year 2024. This move is aimed at recognizing the vital role played by the judiciary in upholding justice and maintaining the rule of law in the country.

The specific perquisites, benefits, and allowances that will enjoy tax exemption include:

1. Perquisites and Benefits from Official Car Usage: (a) Use of official car maintained at government expense.

(b) Superior judicial allowance payable to a Judge of the Supreme Court of Pakistan and a Judge of a High Court.

(c) Transfer allowance payable to a Judge of a High Court.

2. Additional Exemptions During and After Service: (a) Services of a driver and an orderly.

(b) 1000 free local telephone calls per month.

(c) 1000 units of electricity and 25 hm3 of gas per month, along with free water supply.

(d) 200 liters of petrol per month.

3. Exemption for Widow in Case of Judge’s Death During Service: In the unfortunate event of a judge’s death during service, the tax exemption for benefits and perquisites mentioned in sub-clause (2) will also be extended to the judge’s widow.

This progressive step is aimed at ensuring that judges can carry out their duties without facing additional financial burdens, acknowledging the importance of their role in maintaining a fair and impartial judicial system.

The exemption not only covers the duration of a judge’s service but also extends to the post-retirement period, providing a comprehensive financial package to support the retired judges. This includes various allowances and services such as drivers, telephone calls, utilities, and petrol.

Additionally, the provision for tax exemption to the widow of a judge who dies during service reflects a compassionate approach towards the families of those who have dedicated their lives to serving the judiciary.

This move by the FBR aligns with the government’s commitment to ensuring the independence and efficiency of the judiciary by creating a conducive working environment for judges. By providing these tax exemptions, the government aims to attract and retain highly qualified individuals to the judiciary, ultimately benefiting the entire legal system in Pakistan.

The tax exemption for judges of higher courts in Pakistan for the tax year 2024 is a positive step towards recognizing and appreciating the invaluable contributions of the judiciary. It reflects the government’s commitment to supporting the judiciary and ensuring that judges can perform their duties without unnecessary financial constraints.