FCC declares Balochistan excise duty on minerals constitutional

The Federal Constitutional Court on Tuesday upheld the increase in excise duty on minerals introduced under the Balochistan Finance Act 2020, declaring the amendment constitutional and dismissing the petition filed by Attock Cement.

According to the 24NewsHD TV channel report, the constitutional court accepted the “dual aspect doctrine”, ruling that legislation may contain both federal and provincial characteristics without violating constitutional boundaries.

The 15-page judgment, authored by Justice Aamer Farooq, states that a law may simultaneously hold federal and provincial dimensions, and therefore, the amendment made through the Finance Act is valid and lawful.

The verdict explains that the excise duty on minerals has been imposed for labour welfare, an area that falls squarely within provincial legislative authority, and consequently, the Balochistan Assembly was empowered to enact such provisions in the public interest.

The court remarked that provincial legislation does not override or erode federal powers but instead reflects a framework of constitutional harmony, where both tiers of governance exercise their respective mandates.

The petition before the Federal Constitutional Court had sought to have the amendment in excise duty through the Balochistan Finance Act 2020 declared unconstitutional, arguing that the increase in mineral excise duty fell outside the provincial domain.

However, the court concluded that the law was consistent with constitutional principles.

The Balochistan Finance Act 2020 forms part of the province’s annual fiscal legislation, introducing adjustments to taxes, levies and financial regulations.

It includes changes to duties on minerals, alongside other provincial taxation measures such as professional levies, cinema fees, vehicle taxes and sales tax on services, which remained at 15 percent in Balochistan in line with its distinct fiscal structure.

Reporter: Amanat Gishkori