Discriminatory without intelligible differentia [Points 7 & 8]

The Supreme Court of Pakistan in Federation of Pakistan through Chairman FBR and others v Hazrat Hussain and others (2018 SCMR 939) and Messrs.

Lucky Cement Limited through General Manager, Peshawar v Khyber Pakhtunkhwa through Secretary Local Government and Rural Development, Peshawar and others (2022 SCMR 1994) has held that discrimination should not be made even in policies.

This law is discriminatory in nature as the exchange companies and some non-banking financial companies doing the same business were not brought into its ambit and there is no intelligible differentia in overlooking them and singling out the commercial banks only. It is held by Lahore High Court in Service Global Footwear Limited & another v Federation of Pakistan through Secretary Revenue Division & others[(2024) 129 TAX 702 (H.C.Lah.)]:

‘Unconstitutional’ windfall tax–I

In a nub, classification can only be reasonable if it is based on intelligible criteria having nexus to the object sought to be achieved. Further, classifications created on the basis of a separate class of persons which are similarly placed will not offend the fundamental right enshrined in Article 25 of the Constitution.[Para 77,Page 741]

Windfall Tax is “in addition to” and not “in lieu of” tax already charged [point 9]

Tax under section 99D is a tax “in addition to” and not “in lieu of” of tax already charged under section 100A read with........

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