ORDER SHEET

IN THE HIGH COURT OF SINDH AT KARACHI

C.P. No.D-4942 of 2022

___________________________________________________________________ Date Order with signature of Judge

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FRESH CASE:

1. For order on CMA No.21049/2022 (Urgent).

2. For order on CMA No.21050/2022 (Exemption).

3. For order on CMA No.21051/2022 (Stay).

4. For hearing of main case.

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Dated; 26^th August 2022

Mr. Arshad M. Tayebaly alongwith Mr. Aitzaz Manzoor Memon, Advocate for Petitioners.

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1. Urgency granted.

2. Exemption granted subject to all just exceptions.

3&4. Through instant Constitutional Petition, the petitioners have challenged the vires of Section 8(2)(b)&(c) of the Finance Act, 2022, whereby, according to learned counsel for the petitioners, the capital value tax has been imposed on foreign assets of a resident individual, including immovable assets, whereas, according to learned counsel for the petitioners, as per Entry No.50 of Forth Schedule, Part-I of Federal Legislative to the Constitution of Islamic Republic of Pakistan, 1973 the Federation can impose taxes on the capital value of the assets, however, excluding immovable property. Learned counsel for the petitioner submits that in the definition of “foreign assets”, mortgaged assets, stock, shares, bank accounts, etc. have also been included upon which capital value tax will be charged, whereas, according to learned counsel, on above assets taxes are already paid, therefore, it amounts to double taxation. It has been further argued by the learned counsel that subject law does not provide protection to a person, who has already availed tax amnesty in respect of foreign assets by making payment of taxes on the foreign assets, nor any mechanism has been provided to calculate the value of such foreign assets.

Let pre-admission notices be issued to the respondents, as well as Attorney General for Pakistan under Order 27-A, C.P.C., to be served through first three modes, for 14.09.2022, when comments, if any, shall be filed with advance copy to the leaned counsel for the petitioners.

J U D G E