Law: Workers Welfare Fund Ordinance, 1971

Section: 4,2(i),6,11B

Law: Constitution of Pakistan, 1973

Section: 73,78,77,199,73(2),78(1)

(a) Workers Welfare Fund Ordinance (XXXVI of 1971)---Ss. 4, 2(i), 6 & 11B---Constitution of Pakistan, Arts. 73, 78, 77 & 199---Constitutional petition---Money Bill---Scope---"Tax" and "Fee", distinction---Contributions made to the Workers' Welfare Fund by industrial undertakings were in the nature of a "fee" and not "tax"---Petitioners impugned amendments made in S. 4 of the Workers' Welfare Fund Ordinance, 1971 whereby quantum of industrial contributions to the Workers' Welfare Fund was enhanced---Contention of the petitioners was that under the prescribed scope of Money Bill under Art.73 of the Constitution, provisions of the Workers' Welfare Fund Ordinance, 1971 fell beyond the scope of Federal Finance Legislation, and such contributions had the character of a "fee" and not of a "tax; and the impugned amendments were therefore ultra vires the Constitution---Validity---"Tax" was a compulsory exaction of money by public authority for public purposes, whereas "fee" was a quid pro quo, and a recompense for services rendered---Contributions to the Fund were made by industrial undertakings, and the beneficiaries of the disbursements from the Workers' Welfare Fund were workers of such undertakings and therefore, such contributions lacked a direct quid pro quo which was considered a classic feature of a fee however still such contributions did contain a collateral recompense in which the contributor-employer's workers were the beneficiaries of disbursements from the Fund---Distinction between a tax and the fee lay primarily in the fact that a tax was levied a part of a common burden, while a fee was a payment for a special benefit or privilege---Tax was levied to raise funds for meeting the "necessary expenses" of the State, therefore, a tax was not co-related to services rendered or special benefit or privilege conferred on the taxpayer and accordingly the taxpayer was sharing/discharging his obligation under a common burden without being a beneficiary of a corresponding benefit, whereas in contrast, a fee was not part of the common burden but was payment made in lieu of a benefit, service or privilege by the payer of such fee---Workers Welfare Fund could…

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