| Case ID |
f62bdd2f-5300-400c-abf8-ec1ba72c41fe |
| Body |
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| Case Number |
Constitutional Petitions Nos.D-2753 of 2009, D-348 |
| Decision Date |
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| Hearing Date |
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| Decision |
The Sindh High Court ruled that the Workers' Welfare Fund is characterized as a tax rather than a fee, emphasizing the absence of a quid pro quo relationship between the government and the payer. The court determined that the amendments introduced in the Workers' Welfare Fund Ordinance through the Finance Acts of 2006 and 2008 were valid and intra vires the Constitution. The court highlighted that the fund's utilization is directed toward the welfare of workers rather than the payers, reinforcing the classification of the levy as a tax under the constitutional provisions governing taxation. The ruling underscored the importance of maintaining the legislative competence of the government to impose taxes and protect the defined attributes of such levies. |
| Summary |
This case revolves around the legal interpretation of the Workers' Welfare Fund Ordinance, 1971, particularly the nature of the fund as a tax versus a fee. The Sindh High Court examined various legal definitions and precedents to determine the characteristics of the fund. The court concluded that the Workers' Welfare Fund is a tax due to its compulsory exaction from industrial establishments and the absence of any services rendered directly to the payers. This decision is significant in clarifying the scope of taxation powers under the Constitution of Pakistan, emphasizing the legislative authority to impose taxes for public welfare. The ruling also highlights the importance of judicial review in matters of tax legislation and the necessity of upholding constitutional mandates. This case is essential for understanding the distinctions between taxes and fees within Pakistan's legal framework. |
| Court |
Sindh High Court
|
| Entities Involved |
Not available
|
| Judges |
FAISAL ARAB,
SAJJAD ALI SHAH,
JUSTICE AQEEL AHMED ABBASI
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| Lawyers |
Not available
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| Petitioners |
MESSRS SHAHBAZ GARMENTS (PVT.) LTD. AND OTHERS
|
| Respondents |
PAKISTAN THROUGH SECRETARY MINISTRY OF FINANCE, REVENUE DIVISION, ISLAMABAD AND OTHERS
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| Citations |
2013 SLD 1162 = 2013 PTD 969
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| Other Citations |
Collector of Customs and others v. Sheikh Spinning Mills 1999 SCMR 1402,
Pakistan Burmah Shell Ltd. v. Federation of Pakistan 1998 PTD 1804,
Pakistan Flour Mills Association v. Government of Sindh 2003 SCMR 162,
Messrs Mutual Funds Association of Pakistan (MUFAB) v. Federation of Pakistan 2010 PLC 306,
Messrs Elahi Cotton Mills Ltd. v. Federation of Pakistan PLD 1997 SC 582,
The Elel Hotels and Investments Ltd., and another v. Union of India AIR 1990 SC 1664,
Sohail Jute Mills Ltd. v. Federation of Pakistan PLD 1991 SC 329,
Syed Nasir Ali v. Pakistan 2010 PTD 1924
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| Laws Involved |
Constitution of Pakistan, 1973,
Workers Welfare Fund Ordinance, 1971
|
| Sections |
73,
199,
260(1),
2(c),
3 to 6,
Sched.-A, Ch.-1
|