| Citation(s) |
| 2024 SLG 5950 = 2024 SLD 5950 = (2024) 130 TAX 237 = 2025 PTD 313 |
Lahore High Court
I.C.A. No. 13108 of 2023, decided on 12.06.2023, heard on: 12.06.2023
Present; SHAHID KARIM, JUSTICE AND ANWAAR HUSSAIN, JUSTICE
M/S Salman Akram Raja, Ali Sibtain Fazli, Syed Muhammad Ijaz, Syed Naveed A. Andrabi, Muhammad Ajmal Khan, Shehbaz Butt, Faisal Rasheed Ghauri, Barrister Muhammad Abu Bakar, Azeem Hafeez, Raheel Safdar, Rai Amer Ijaz Kharal, Hammad ul Hassan Hanjra, Basharat Ali Awan, Ibrahim Haroon, Ghias Ahmad, Ahsan Ahmad, Ch. Babar Waheed, Muqaddam Sukhera, Nadeem Shahzad Hashmi, Usman Ali Bhoon. Malik Ahsan Mahmood, Anas Irtiza Awan, Waseem Ahmad Malik, Ch. Wasim Ismail, Muhammad Shabbir Hussain, Mahmood Arif, Ibrahim Shahbaz Butt, Muhammad Ahsan Mahmood, Asad Abbas, Usman Zia, Mudasir Cheema, Abad ur Rehman, Hasham Ahmad Khan, Umar Tariq Gill, Kaivan Hossain Mir, Isa Ahmad Jalil, Muhammad Hamza Rauf, Muhammad Imran Khan, Fahim Khadam, Syed Faryad H. Shah Tirmizi, Khurram Saleem, Muhammad Iqbal Sabri, Raja I-lamza Anwar, Mansha Sukhera, Zeeshan Asif, Muhammad Ali Awan, Omer Iqbal Khawaja, Saqib Qadeer, Muhammad Abrar, Yasir Hameed, Azeem Suleman, Muhammad Arslan Saleem Chaudhry, Mohsin Majeed, Faisal Anwar Minhas, Muhammad Zeeshan Sulehria, Kashif Habib Sheikh, Malik Nadir Ali Sherazi. Muhammad Usman, Muhammad Waseem Akram, Asad Javed Jutt, Ahmad Khalid, Waqar Fayyaz Dogar, Mian Nafees Bashir, Syed Kamal Ali Ilaider. Ashiq Ali Rana, Ch. Sabir Ali, Ali Raza Advocates for the Appellants. Mr. Asad Ali Bajwa, D.A.G. Mr. Muhammad Mansoor Sial, Asst. Att. General. Ms. Sheeba Qaiser, A.A.G. M/S Barrister Ahmad Pervaiz, Shahzad Ahmad Cheema, Malik Abdullah Raza, Qaiser Zaman, Ibrar Ahmad, Ms. Riaz Begum, Falak Sher Khan, Saffi ul Hassan, Muhammad Nouman Khan, Jawad H. Tarar and Ms. Scheharezade Shahryar, Advocates for the
Respondents
MRS. SHEHLA TARIQ SAIGOL AND OTHERS
VS
FEDERATION OF PAKISTAN AND OTHERS
Law: Law Reforms Ordinance, 1972
Section: 3
Law: Constitution of Pakistan, 1973
Section: 141,142, 42(a)(e),143
Law: Income Tax Ordinance, 2001
Section: 8,8(2)(b)
SUMMARY; The Court upheld the constitutionality of Section 8(2)(b) of the Finance Act, 2022, and dismissed the constitutional petitions. The appellants' challenge against the imposition of Capital Value Tax on foreign assets was rejected, and the Court concluded that the Federal Government had the authority to impose taxes on the capital value of assets held by residents, regardless of their location. ________________________________________ Key Principles: 1. Broad Interpretation of Legislative Entries: Legislative entries should be interpreted broadly and liberally to ensure that the Parliament's power to legislate is not unnecessarily constrained. 2. Federal vs Provincial Jurisdiction: While provinces can legislate on matters within their borders, the Federal Government has jurisdiction over extra-territorial matters, including taxes on foreign assets of residents. 3. Capital Value Tax: The taxation of the capital value of assets is within the Federal Government’s power under Entry 50 of the Fourth Schedule, excluding immovable property. JUDGMENT: SHAHID KARIM, JUSTICE:---.--- This appeal under Section 3 of the Law Reforms Ordinance, 1972 brings a challenge to the judgment dated 22.12.2022 passed by a learned Single Judge of this Court. Through this judgment a cluster of appeals (listed in Appendix-I) will also be disposed of. his judgment will also decide a number of on constitutional petitions directly fixed before this Court on the same issue and raising a common challenge. 2. In sum, the appellants before the learned Single Judge sought a declaration regarding section 8(2)(b) of the Finance Act, 2022 (“the Act, 2022”) to the effect that the provision as outwith the authority of the Parliament and, therefore, the imposition of capital value tax in terms of the provision was ultra vices and unconstitutional. The constitutional petitions were dismissed by the learned Single Judge and the appellants are now before this Court in appeal. 3. Section 8(2) b) of the Act, 2022 provides that. “8(2) Capital value tax shall be charged on the following assets. (a) _____________ (b) foreign assets of a resident individual…
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