Huzaima Bukhari & Dr. Ikramul Haq The Income Tax Ordinance, 2001, was promulgated by General Pervez Musharraf, through a Presidential Ordinance on September 13, 2001 repealing Income Tax Ordinance, 1979, which was also introduced by a military dictator, General Zia-ul-Haq. Section 1(3) of Income Tax Ordinance, 2001 says: “It shall come into force on such...Read More

Huzaima Bukhari “When the leaders choose to make themselves bidders at an auction of popularity, their talents, in the construction of the state, will be of no service. They will become flatterers instead of legislators; the instruments, not the guides, of the people”—Edmund Burke Without any exaggeration, Wikipedia enlists hundreds of satirists from early recorded...Read More

Huzaima Bukhari & Dr. Ikramul Haq Federal Board of Revenue (FBR) recently sought the guidance of clergy on the issue of taxation of Islamic financial instruments. In this regards, the following Press Release was sent to media by FBR on August 17, 2008: “Islamic Finance has gripped the world with a strong fervour and passion....Read More

Huzaima Bukhari “Walaqad khalaqnal insaana wa na’alamo maa tuwaswiso behi nafsohu wa nahno aqrabo ilaihi min hab’l an’wareed  And indeed it is We Who created humankind, and fully know what their souls whisper to them, and We are closer to them than (their) jugular vein”—Al-Quran 50:16 (Translation by Dr. Mustafa Khattab) The United Nations Special...Read More

Huzaima Bukhari & Dr. Ikramul Haq Sadly, on March 20, 2010 we lost Mr. Rehan Hassan Naqvi, a humanist par excellence, brilliant intellectual and extraordinary legal mind—he was different from all other tax lawyers of his time. Not only are his contributions to the legal profession unmatched and everlasting but his loving personality will forever...Read More

Dr. Ikramul Haq The powers granted to Federal Board of Revenue (FBR) by the Legislature in 2018 under section 230F of the Income Tax Ordinance, 2001 [“the Ordinance”] to acquire any immovable property that is transferred by a person (transferor) to any person (transferee) for a consideration, less than the fair market value. It stands...Read More

Huzaima Bukhari “Illusion is needed to disguise the emptiness within.”—Arthur Erickson (Canadian architect) According to Andrew Schneider, “Truth is a perception of depth in which we perceive more of what is there, while illusion is a superficial perception of reality.” These days there is too much stress on appearances whether in terms of dressing or...Read More

Flagrant Constitutional violations Huzaima Bukhari & Dr. Ikramul Haq The taxation of “services” mentioned in section 153(1)(b) of the Income Tax Ordinance, 2001 [“the Ordinance”] with effect from tax year 2020 is subjected to “minimum tax regime” in cases where tax is deducted/deductible or normal tax regime, whichever is higher. Earlier, it was either under...Read More

Huzaima Bukhari & Dr. Ikramul Haq The coalition government of Pakistan Tehreek-i-Insaf (PTI) in its very first budget for finance year 2019-20, through Finance Act, 2019, imposed ‘minimum tax regime’ for certain class of taxpayers along with tax on normal income, whichever is higher, with effect from tax year 2020. This is in utter violation...Read More

Dr. Ikramul Haq The shrinking share of direct taxes in overall collection is a serious cause of concern. It is now well-established that there is a direct link between growing poverty in Pakistan and distortion in tax base since 1991-92, when a major shift was made by introducing presumptive taxes (indirect taxes in the garb...Read More