Editorial
The Supreme Court of Pakistan has recently dismissed a significant number of appeals filed by the Federal Board of Revenue (FBR), shedding light on the ongoing issue of frivolous litigation that plagues the country’s tax system. Critics have long claimed that FBR frequently files baseless appeals, blaming the courts and tribunals for delays that result in billions of rupees in unrealized revenues. The FBR’s pattern of filing unnecessary appeals, without clear merit, wastes both taxpayer money and valuable judicial resources, further exacerbating the backlog in Pakistan’s already overburdened court system.
Despite clear court rulings rejecting numerous appeals, FBR continues to push for legal challenges, ignoring prior judgments and creating unnecessary delays. The Supreme Court, in several instances, has dismissed these appeals, yet has failed to penalize FBR for such wasteful litigation. The lack of accountability for FBR’s actions highlights the inefficiency of the department and the country’s judicial system as a whole. Even after being reprimanded by the court, no corrective measures have been taken by FBR, revealing the lack of institutional discipline and oversight.
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A report by the Chief Justice of Pakistan in 2024 revealed that over 108,000 tax-related cases are pending before the courts, involving potential revenues worth trillions of rupees. The high number of frivolous appeals only adds to this ever-growing backlog, further delaying the dispensation of justice. This inefficiency undermines the credibility of the tax system and fails to provide taxpayers with fair treatment.
Pakistan’s judicial reforms are urgently needed to address these systemic issues, eliminate unnecessary litigation, and ensure swift justice. Without tackling the root causes of excessive tax litigation, the inefficiency in the legal and administrative systems will continue to cost taxpayers and the country’s economy dearly. The government and judiciary must prioritize reducing litigation and improving the efficiency of the legal system to restore public trust and ensure fair treatment for all.
