A single bench of regional Chief Court comprises of Judge Raja Shakeel Ahmed has suspended the collection of different taxes on imported goods through Pak-China border at Sust by the traders of the area. Chief Court of the region has restrained the Federal Board of Revenue (FBR) and Pakistan Custom Authorities from collection of income tax, sale tax and additional super tax till the next date of hearing and directed the office of the court to place the case before the Chief Judge of the Chief Court oncompletion of the summer vocations of the court for further placement of the case before any appropriate bench for adjudication of the matter. President importer and exporters associationIqbalHussainhas filed a writ petition through his lawyers before the Chief Court, where-in it was contended that region has been exempted from payment of taxes, but the relevant authorities were being collected the different taxes on imported goods at Sust Dry port, which was again the law and illegal. After preliminary hearing of the case, court has issued notices to the relevant authorities, where-as the said case would be heard after the summer vocation of the court, which would be end on 31th July 2024.
Territory of Gilgit-Baltistan does not fall under the ambit of Constitution of Pakistan-1973 in terms of Article 1 of the Constitution, that’s why the region has been exempted from the imposition/collection of taxes, but the relevant authorities of the federal government were collecting the different taxes on imported goods at Pak-China borderSust Dry being imported by the local traders. Importer and Exporter Association President IqbalHussain through his lawyers had filed a writ petition before the Chief Court of region, where-in it was contended that the region has been exempted from payment of different tax due to its special legal status, but the relevant authorities of the federal government were receiving the sales tax, income tax and additional super tax from the traders belonging to the region and according to the petitioner, collection of these taxes were illegal and against the law. A single judge of the Chief Court (vocational Judge) after preliminary hearing of the petitioner’s case has restrained the relevant authorities from collection of taxes till the next date of hearing and notices have been issued to the concern quarters of the federal government, where-as office of the court has been directed to place the case before the Chief Judge of the Chief Court for further placement of the case before any appropriate bench for adjudication of the matter. It may be pertinent to mention here that a five members bench of the Supreme Court of Pakistan in Al Jehad Trust case of 1999, it was held that the people of Northern Areas (now Gilgit-Baltistan) are citizen of Pakistan for all intends and purpose and they as citizen of Pakistan may invoke the jurisdiction of Supreme Court for enforcement of their fundamental rights and they are alsoliable to pay taxes and other levies competently imposed upon them. This decision of the Supreme Court of Pakistan was re-affirmed by a seven member bench of the Supreme Court on 17th January 2019 and it was also held that courts constituted under the Order-2018 could not sit as a court having the powers of judicial review in respect of the territory of Pakistan and most recently a three member bench of the Supreme Court of Pakistan headed by the Chief Justice QaziFaezEssa has also held similar views about the powers of G-B Courts regarding the affairs of federation. It would be premature to comment upon the matter, but it was load and clear that the authorities of the federation could not impose any sort of taxes upon the people of the region including the traders working at Pak-China border Sust till the determination of its legal status under the ambit of Constitution of Pakistan and we may expect that the relevant authorizes of the federal government would comply the orders of the Chief Court and they would not deduct the taxes on imported goods till the next date .
We may expect that Chief Court of the region would decide the matter as per merits of the case after hearing all necessary parties and in the meanwhile, concern quarters of the federal government shall comply the order issued by the Chief Court with regards to the non-collection of different taxes at Sust dry-port……..END
