Summary Federal Constitutional Court nullifies Section 7E of Income Tax Ordinance, voids all FBR actions under it, and upholds citizen appeals, giving relief to Pakistan’s real estate sector
ISLAMABAD (Dunya News) – The Federal Constitutional Court has declared Section 7E of the Income Tax Ordinance null and void, dismissing all appeals filed by the Federal Board of Revenue (FBR) seeking its reinstatement.
Under Section 7E, taxes were imposed even on plots that were not under development or use, a provision that had sparked legal challenges across the country.
Earlier, the Peshawar and Balochistan High Courts had ruled Section 7E invalid, while the Islamabad and Lahore High Courts had deemed it constitutional.
The Federal Constitutional Court upheld appeals filed by citizens challenging the decisions of the Islamabad and Lahore High Courts.
The court’s decision, reserved on April 30, was read by Chief Justice Amin-ud-Din Khan, who noted that all actions taken by FBR under Section 7E are now void.
The ruling is expected to directly benefit the real estate sector across Pakistan.
