The Pakistan Tax Bar Association (PTBA) has urged the newly appointed Chief Justice of Pakistan, Justice Yahya Afridi, to address key high-profile tax cases that remain unresolved. These cases include matters related to the super tax, Capital Value Tax, and the Section 7E levy.
In a detailed letter, PTBA highlighted the significant challenges posed by these pending cases, particularly the 4B and 4C super taxes and the Capital Value Tax. They emphasized the need for an efficient resolution to reduce the backlog and provide clarity to taxpayers.
As part of their recommendations, PTBA proposed integrating resolved tax cases into an automated judicial system. This system would assist courts and tribunals in expediting cases at the preliminary “Kacha Peshi” stage, potentially easing the burden on the judiciary and curtailing prolonged litigation.
The association also voiced concerns regarding recent amendments introduced through the Tax Laws Amendment Act, 2024. Under these changes, appellate remedies under income and sales tax laws have been redefined. For disputes involving demands below Rs. 20 million, appeals can now only be filed as references in High Courts, with a mandatory 30% payment required to obtain a stay. Additionally, a Rs. 50,000 fee has been imposed on such filings.
PTBA argued that these measures would increase the workload of High Courts, restrict taxpayers’ rights to an impartial and timely hearing, and limit the courts’ discretion in granting stays.
To further streamline tax litigation, PTBA requested representation in a committee recently established by the Chief Justice to oversee tax-related cases. The association offered its expertise to develop mechanisms that could expedite case disposal.
“These reforms are essential for addressing Pakistan’s economic challenges, reducing litigation delays, and fostering an environment conducive to foreign and local investment,” the PTBA stated.
The association’s proactive approach underscores the critical role of judicial reforms in resolving Pakistan’s economic and taxation issues.
