Pakistan court dismisses petitions to review Income Support Levy Act ruling — Dawn

Pakistan’s Federal Constitutional Court in Islamabad has dismissed dozens of petitions seeking a review of the Supreme Court’s December 28, 2021 ruling on the Income Support Levy Act 2013. The court also expressed serious concerns over the actions of a Supreme Court bench that in 2022 agreed to hear largely identical constitutional questions, although the earlier ruling remained in force and had already been subject to review, Dawn reports.

The 2021 ruling remains in force

A bench of the Federal Constitutional Court comprising Chief Justice Aminuddin Khan and Justice Ali Baqar Najafi considered the petitions concerning the Supreme Court’s 2021 ruling. At that time, the Supreme Court refused leave to appeal in cases arising from a 2020 ruling of the Sindh High Court.

A Supreme Court bench comprising Aminuddin Khan and Qazi Faez Isa concluded that the Income Support Levy Act 2013 had not acquired the status of an effective law. The act was enacted through the Finance Act 2013 without following the legislative procedure stipulated by the Constitution. The ruling was authored by Qazi Faez Isa, who became Chief Justice of the Supreme Court in 2023.

Remarks on the 2022 decision

In June 2022, another three-judge Supreme Court bench, which included Justice Munib Akhtar, granted leave to hear a case involving largely identical constitutional questions. It also expressly provided for the possibility of revisiting the 2021 findings.

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The Chief Justice of the Federal Constitutional Court noted that subsequent or co-equal judicial benches must properly take previous court rulings into account. In his assessment, departing from them must comply with the rules of judicial precedent and established institutional procedure.

The court noted that refusal of leave to appeal does not always preclude consideration of another petition. At the same time, granting such leave cannot by itself review, alter, or displace an earlier ruling. The Federal Constitutional Court found no apparent error or other fundamental defect in the 2021 ruling that could justify its review.

Constitutional status of the levy

The main question was whether the levy introduced through the Finance Act 2013 could be enacted under the constitutional category of a Money Bill pursuant to Article 73(2) of Pakistan’s Constitution. The court concluded that despite its financial implications, the levy did not fall within that category and should have undergone the ordinary legislative procedure involving both houses of parliament. The court described the Money Bill procedure as a limited exception to the general process for enacting laws.