KARACHI: A division bench of the Sindh High Court has passed an interim order, directing the Federal Board of Revenue (FBR) to allow taxpayers to file their income return without payment of income support levy. In its interim order on October 22, 2013, the court also directed the Chairman FBR to make necessary modification in FBR-e-Portal to accept the return of income of taxpayers without payment of ISL. This order of the high court was issued by bench, consisting of Justice Aqeel Abbasi and Justice Muhammad Junaid Ghaffar. The order was made applicable to the petitioners and also in case of other taxpayers to maintain uniformity and avoid confusion and inconvenience to taxpayers at large. Abid Shahban Advocate representing the petitioners said on Thursday this is an interim order and the court will hear argument in the case on November 7, 2013. He said that as the matter was sub-judice he would not comment on the petition. But, he confirmed it was order ‘Rem’ and in applicable to all taxpayers irrespective of the fact whether they have filed petitions in the high court, not challenging the income support levy. According to a copy of the petition, the advocate challenged the validity and legality of the Income Support Levy Act 2013 through which the income support levy was imposed on taxpayers who were required to pay the levy along with the wealth statement – which is filed with the income return. In the petition, it was contended the income support levy is discriminatory, violating the Article 25 of the Constitution of Pakistan – which ensures equality of citizens. In the petition, the reliance was placed on a large number of decisions of the Supreme Court of Pakistan to establish that under the constitution equality of citizens is to be ensured and it was settled proposition of law that the tax laws should be imposed on similarly placed persons equally. The petitioners prayed that after the passage of 18th Amendment to the Constitution of Pakistan, the federal government does not have authority to pass any legislation on the social welfare of public at large. The said right has now been devolved to the provinces. It is interesting that last year about 770,000 non-corporate returns were filed, and this income support levy would only be payable by about 7,70,000 individuals who file their income return and have net moveable assets of over one million rupees at 0.5 percent and not by those who may own billions but do not file their return. Clearly, this levy in its present form is discriminatory. In the petition, the validity of levy has also been challenged on violation of constitution requirement of introduction and passing of bills as laid down in Article 70 of the constitution. Income Support Levy Act 2013 – which is a new law – was embedded in the Finance Act 2013 and passed as money bill under Article 73 of the constitution. This levy has also been challenged on touchstone of double taxation as wealth. Legal experts said that the order had saved a large number of taxpayers, including salary taxpayers, from lot of inconvenience and hardship as now they could file their income return without payment of income support levy. —Shahnawaz Akhter
