Mohsin Siddiqui (Chief Reporter)
The Senate Special Committee convened on Monday to address the pressing issue of tax litigation backlog by passing the Tax Laws (Amendment) Bill 2024 with significant amendments. This move aims to expedite the disposal of tax cases amounting to Rs 2.7 trillion currently pending in courts across Pakistan.
Chaired by Senator Farooq Hamid Naek, the committee deliberated on the Money Bill, specifically focusing on the Tax Laws Amendment Bill 2024, at the Parliament House. Attorney General of Pakistan, Mansoor Awan, provided crucial insights during the session, highlighting the urgent need to create a dedicated ‘Director General Law’ position within the Federal Board of Revenue (FBR) to address tax litigation promptly.
According to Awan, the primary objective of the Money Bill is to streamline tax litigation processes by empowering the Director General Law to oversee the timely resolution of cases pending before Commissioner Inland Revenue and Appellate Tribunals. One significant amendment introduced in the draft Tax Laws Amendment Bill 2024 is the reduction of stay order timelines from six months to 30 days, aiming for more efficient case management.
Furthermore, Awan emphasized that the Money Bill serves as a crucial safeguard against tax evasion, underscoring the government’s commitment to broadening the tax base to alleviate the prevailing financial crunch.
Senator Farooq Hamid Naek advocated for empowering the Director General Law to appoint regular lawyers, highlighting the potential delays associated with relying on private legal practitioners. Additionally, the Money Bill proposes a reduction in the appeal period before the High Court from ninety days to thirty days, and it limits the jurisdiction of Commissioner Appeal to cases where the tax value does not exceed 10 million rupees. Cases exceeding this threshold will be appealed before Appellate Tribunals.
In a notable development, the Special Committee unanimously rejected the observations submitted by Senator Ali Zafar, further underlining the consensus achieved regarding the amendments to the Money Bill. After thorough deliberation, the Special Committee passed the Tax Laws Amendment Bill 2024 with the incorporated amendments.
Key stakeholders present at the committee meeting included Federal Minister for Law and Justice Azam Nazeer Tarar, Attorney General of Pakistan Mansoor Awan, Chairman of the FBR Malik Amjed Zubair Tiwana, and senior officials from the Finance Division and FBR.
This legislative initiative underscores the government’s proactive approach to addressing critical issues in tax governance and legal reforms. By expediting the resolution of tax litigation and enhancing regulatory frameworks, Pakistan aims to strengthen its fiscal management and promote economic stability in the long run.
