As financial year 2025 is nearing its end, Government is beefing up its efforts to complete the fiscal revenue collection target set for the year.
The Governmental statistics depict that a large amount of tax is stuck in litigations. To address this, major amendments were made in the Income Tax Ordinance, 2001 [ITO 2001] through Finance Act, 2024 in the appellate/ litigation framework in an attempt to expedite disposal of pending tax cases.
There are a large number of tax cases that are being heard at the Higher courts. This inter-alia includes constitutional challenges on super tax, both under section 4B and 4C of ITO 2001. The Amendments Ordinance 2025 has now amended the recovery provisions under the ITO 2001 so that if the Department’s position in these cases is upheld, the recovery of underlying tax can be made immediately and smoothly.
The Amendments Ordinance 2025 has also brought in changes in the Federal Excise Act, 2005 [FE Act 2005], to introduce stringent measures against counterfeit production which has always acted as a major stimulus of under declaration.
