Revenue Stuck in Legal Disputes

“Billions of rupees remain locked due to unresolved tax cases.”

ISLAMABAD: Pakistan’s tax revenue collection faces severe delays as over 108,000 tax cases, involving 4,457 billion rupees, remain unresolved in higher courts. As a result, the growing backlog continues to impact economic stability, making tax recovery a major challenge for the government.

Tax Revenue Stuck in Legal Disputes, as revealed in a Supreme Court meeting held on November 7, 2024, under Chief Justice of Pakistan Yahya Afridi. During the meeting, officials from the Federal Board of Revenue (FBR) and the Ministry of Finance presented details on the pending litigation affecting national tax collection.

Around 6,000 tax cases remain unresolved in the Supreme Court alone, amounting to billions in potential recoveries. Additionally, 2,000 cases are stuck in lower courts and tribunals, often delayed due to prolonged stay orders. Consequently, the backlog disrupts legal proceedings, slows down tax collection, and causes substantial losses to the national treasury.

To tackle this crisis, a special Supreme Court committee has taken charge. In response, key legal and financial experts analyze the root causes and propose institutional reforms for faster resolution.

The absence of dedicated revenue benches and alternative dispute resolution (ADR) mechanisms at the FBR prolongs litigation. Furthermore, unnecessary appeals by revenue authorities burden the courts, extending legal disputes for years. As a result, tax-related cases continue to pile up without resolution.

Therefore, the committee recommends several solutions, including:

• Establishing exclusive revenue benches in higher courts.
• Implementing a binding ADR mechanism at the FBR.
• Restricting repeated appeals beyond two judicial levels.
• Enforcing strict case disposal timelines.
• Utilizing technology to streamline case management and decision-making.

Moreover, legal experts emphasize that judicial and administrative reforms must prevent future tax litigation from dragging on. Additionally, a centralized legal database can assist courts in expediting case decisions based on precedents.

To gather stakeholder feedback, a WhatsApp group now invites input from tax officials, legal experts, and business leaders. As a result, the committee will soon present a final report detailing concrete measures to accelerate tax dispute resolutions. Meanwhile, officials continue discussions to refine legal frameworks for faster case resolution.

With Pakistan’s economy struggling with fiscal deficits and slow tax collection, unresolved cases threaten financial stability. Ultimately, the Supreme Court’s intervention ensures efficient tax recovery and economic growth. Therefore, swift action is necessary to prevent further economic setbacks.

Tax Revenue Stuck in Legal Disputes highlights the urgent need for reforms to unlock billions in pending revenue.

Timenews1 provided that news.