Karachi, October 8, 2024 – In a significant legal development, the High Court of Sindh at Karachi has issued a stern directive to the Federal Board of Revenue (FBR) and Customs authorities regarding the delayed refund of the now-illegal mobile handset levy. The case has been brought forward by the renowned law firm Hyder Ali & Associates on behalf of petitioners M/s Pole Communication Technology (Pvt.) Limited.
The levy, declared unlawful by the Sindh High Court in March 2023 and upheld by the Supreme Court in November 2023, has yet to be refunded despite binding legal precedent. During the proceedings, the petitioner’s counsel emphasized that even after the top Court’s ruling, the collected amount remains unpaid, which is a violation of both the court’s order and the directives of the Federal Tax Ombudsman (FTO), where department has even lost the review.
The court, expressing its dismay, called for an explanation from the FBR and Customs officials, who while admitting in writing before the Court that refund is due, in the same vein attributed the inaction to their administrative confusion over the head of account from which the payment has to be made. The bench observed that it was no excuse for inordinate delay in refund, and that in case positive or satisfactory answers are not provided by the next hearing on November 5, 2024, it would summon the FBR Chairman and the Chief Collector of Customs to court.
The case underscores taxpayers growing frustration over FBR and Customs casual attitude and disregard in implementation of judicial decisions passed even by the highest court of the country.
