Tax Laws (Amendment) Ordinance 2020 challenged in SC
PML-N leader Daniyal Aziz Monday moved the Supreme Court against the Tax Laws (Amendment) Ordinance 2020, seeking an intervention to declare the legislation null and void.
According to 24NewsHD TV channel, the petitioner also sought immediate suspension of the ordinance till the matter was decided by the court.
The Tax Laws (Amendment Ordinance) 2020, which was enforced on April 19, has been introduced by the government while taking cover in the coronavirus pandemic to protect black money, Daniyal stated.
The petition said the only purpose of the ordinance was to benefit the elite in clear violation of domestic and international laws and agreements.
Making the Federation, finance ministry, Federal Board of Revenue (FBR) and Cabinet Division respondents, Daniyal also mentioned that the Tax Laws (Amendment Ordinance) 2020 was also in violation of the Supreme Court’s earlier judgments.
It is worth noting that the Tax Laws (Amendment) Ordinance, 2020 especially focuses on the construction industry and provides a fixed tax regime – based on per square feet and per square yard – for developers and the builders.
They are also exempted from the minimum tax on annual turnover and Alternative Corporate Tax applicable on accounting profits, as the related clauses will not apply to their turnover, income, profits and gains from eligible projects.
The ordinance was introduced after Prime Minister Imran Khan announced an incentive package for the construction sector.
He has been of the view that it is necessary to boost construction to increase employment opportunities in the country after the coronavirus pandemic outbreak.
Hence, the prime minister’s special package for the sector necessitated the promulgation of this ordinance as both the National Assembly and Senate were not in session.