ISLAMABAD: The Supreme Court of Pakistan has reinstated the Sales Tax Amendment Act in the formerly Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), effectively suspending an earlier ruling by the Peshawar High Court that had invalidated the legislation.
A five-member constitutional bench, led by Justice Amin-ud-Din Khan and including Justices Jamal Khan Mandokhail, Muhammad Ali Mazhar, Syed Hasan Azhar Rizvi, and Shahid Bilal Hassan, heard the matter on Wednesday. The case revolved around tax exemptions previously granted under the Sixth Schedule of the Sales Tax Act to residents of the ex-FATA and PATA regions.
During the proceedings, the counsel representing the Pakistan Vanaspati Manufacturers Association argued that the Peshawar High Court had overstepped its constitutional mandate. The lawyer maintained that the high court went beyond the scope of the original petition by issuing a decision that effectively nullified a law passed by Parliament.
After reviewing the arguments, the Supreme Court issued an order suspending the Peshawar High Court’s verdict and reinstated the Sales Tax Amendment Act in the merged tribal areas. The apex court further imposed a stay on the implementation of the high court’s ruling while hearing the appeals filed against it.
Notices were issued to all relevant parties, and the Supreme Court adjourned the case indefinitely, with no date announced for the next hearing.
The Peshawar High Court had previously declared the Sales Tax Amendment Act void, citing its inconsistency with constitutional protections. However, the Supreme Court’s latest decision restores the legal standing of the Act, allowing tax authorities to resume enforcement in the affected regions.
