The Federal Constitutional Court has declared Section 7E of the Income Tax Ordinance unconstitutional, delivering a major setback to the Federal Board of Revenue and providing significant relief to Pakistan\u2019s real estate sector.<\/p>\n
The court also dismissed appeals filed by the FBR seeking restoration of Section 7E and declared all actions taken under the provision unlawful.<\/p>\n
Section 7E had imposed tax liabilities on certain immovable properties, including plots that were not being used or generating income, under the concept of deemed income.<\/p>\n
Earlier, the Peshawar High Court, Balochistan High Court and Islamabad High Court had struck down the provision, while the Lahore High Court and Islamabad High Court, in separate rulings, had previously upheld it as constitutional.<\/p>\n
The constitutional court accepted appeals filed by citizens against the decisions supporting the law and overturned those rulings.<\/p>\n
Chief Justice Aminuddin Khan announced the short order, observing that the judgment would directly benefit the real estate sector.<\/p>\n
The court had reserved its verdict on April 30 after concluding hearings on the matter.<\/p>\n
In its short written judgment issued later, the court declared that Section 7E was contrary to the Constitution and would be treated as void from the very beginning.<\/p>\n
The ruling further stated that all actions taken by the FBR under Section 7E would also be considered illegal.<\/p>\n
The court said a detailed judgment explaining the legal reasoning behind the decision would be released later.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Federal Constitutional Court has declared Section 7E of the Income Tax Ordinance unconstitutional, delivering a major setback to the Federal Board of Revenue and providing significant relief to Pakistan\u2019s real estate sector. The court also dismissed appeals filed by the FBR seeking restoration of Section 7E and declared all actions taken under the provision […]<\/p>\n","protected":false},"author":5,"featured_media":74295,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30,16],"tags":[103],"ppma_author":[213],"class_list":{"0":"post-74294","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-latest","8":"category-pakistan","9":"tag-top-stories"},"yoast_head":"\n