ISLAMABAD: The Federal Constitutional Court has declared Section 7E of the Income Tax Ordinance null and void, delivering a major relief to the country’s real estate sector.
The court also dismissed appeals filed by the Federal Board of Revenue (FBR), seeking restoration of the provision, and ruled that all actions taken under Section 7E would stand invalid.
Section 7E had imposed tax on deemed income from immovable properties, including plots that were not in active use, drawing criticism from property owners and investors.
Earlier, the Peshawar, Balochistan, and Islamabad High Courts had struck down the provision, while the Islamabad and Lahore High Courts had upheld it as constitutional. The constitutional court accepted appeals filed by citizens against the latter rulings.
The verdict had been reserved on April 30 and was announced by Chief Justice Ameenuddin Khan, who noted that the decision would directly benefit the real estate sector.
Legal experts say the ruling is likely to have significant implications for property taxation policies and investment trends in Pakistan.
