close

Taxes on immovable property: ‘After 18th Amendment, govt no longer has authority to impose taxes’

By Our Correspondent & Sohail Khan
April 15, 2026
The Federal Constitutional Court (FCC) is seen in this image. — Geo Tv/File
The Federal Constitutional Court (FCC) is seen in this image. — Geo Tv/File

ISLAMABAD: The Federal Constitutional Court (FCC) on Tuesday continued hearing dozens of petitions challenging the Section 7E of Income Tax Ordinance, 2001.

A two-member bench, headed by Chief Justice Aminuddin Khan and including Justice Ali Baqar Najafi, heard the case.

During the proceedings, lawyers representing taxpayers continued their arguments, maintaining after the 18th Constitutional Amendment, the federal government no longer has the authority to impose taxes on immovable property.

They argued such taxation falls entirely within the jurisdiction of provincial governments, making Section 7E constitutionally invalid.

The taxpayers’ lawyers further submitted the provision lacks a reasonable basis and clear classification, failing to meet constitutional standards for fair and justified legislation.

They also contended the tax is arbitrary and discriminatory, without a solid legal or economic foundation.

The hearing mainly focused on issues of legislative authority, federalism and constitutional validity of taxation powers. After hearing the arguments, the bench adjourned the case until today (Wednesday), when petitioners’ lawyers are expected to continue their arguments.

Meanwhile, the FCC on Tuesday rectified a decades-old injustice by restoring the inheritance rights of the legal heirs of Sardar Begum, who had been unlawfully deprived of their share for nearly 68 years due to a critical omission in the revenue record. A two-member bench, comprising Chief Justice Aminuddin Khan and Justice Ali Baqar Najafi, heard the case and allowed an application for impleadment filed by the legal heirs of Sardar Begum, declaring them necessary and proper parties to proceedings concerning consolidation of land in Mouza Dhaunkal, Wazirabad Tehsil.

Appearing on behalf of the applicants, Hafiz Ahsaan Ahmad Khokhar contended that the deprivation of Sardar Begum and her legal heirs was not only unlawful but also amounted to a continuing violation of settled principles of inheritance law. He pointed out that Sardar Begum had passed away in 1958, prior to the death of her father, Chaudhry Abdullah Khan, who died later in 1968. Upon his death, the mutation of inheritance was attested in the same year; however, Sardar Begum, despite being his lawful daughter, was not entered in the mutation.

Consequently, the counsel submitted that her sons and daughter were also deprived of the share to which they were legally entitled adding that this omission was not merely clerical but resulted in the complete exclusion of an entire branch of lawful heirs. The court held that her legal heirs were fully entitled to inherit from both her father and mother in accordance with the law. The court further observed that although Sardar Begum had passed away prior to her father’s death, her status as a daughter was required to be reflected in the inheritance mutation to determine the rightful distribution.

The court allowed the impleadment application and directed that the legal heirs of Sardar Begum, including substituted heirs of her deceased son Javed Iqbal, be made parties to the proceedings. The court further indicated that the earlier distribution of property among three sons and three daughters must now be revisited to include Sardar Begum, ensuring lawful distribution among three sons and four daughters. Later, the court adjourned the hearing until May 13, 2026.

Meanwhile, a petition was filed on Tuesday in the Federal Constitutional Court against the Lahore High Court’s notification of biometric verification and fees. The petition has been filed by former President of the Multan High Court Bar, Syed Riaz-ul-Hasan Gillani.

The petitioner has requested that the Lahore High Court’s notification dated January 7, 2026, be declared unconstitutional.