FCC reserves judgment in provincial cess case

The Federal Constitutional Court (FCC) has reserved its judgment in the case concerning the Sindh and Khyber Pakhtunkhwa Development and Infrastructure Cess, imposed by the two provinces to develop and maintain infrastructure for smooth and safe transportation of goods by road. During proceedings, the Attorney General for Pakistan argued that the legislative competence to regulate imports and exports, including customs duties, lies exclusively with Parliament under Article 142(a) of the Constitution.

Senior counsel Hafiz Ehsaan Ahmad Khokhar supported this position, emphasizing the need to determine the constitutional validity of these levies based on their true nature, charging provisions, taxable event, incidence, and actual operation. On the other hand, Isaac Ali Qazi argued that the levy on goods exported out of the province falls within the legislative competence of the Federation under Entry 43 of the Federal Legislative List.

The FCC's judgment is awaited, as it will determine the constitutional validity of these provincial cesses.

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