Increase in agri tax challenged in LHC

Published May 24, 2026 Updated May 24, 2026 06:56am

LAHORE: A petition has been filed before the Lahore High Court challenging the increase in agricultural tax in Punjab.

Opposition MPA Ijaz Shafi and the Judicial Activism Panel (JAP) filed the joint petition through Advocate Azhar Siddique, pleading that the government had unlawfully revised the agricultural income tax rates without mandatory legislative approval and by bypassing the constitutional role of the Assembly.

The petition argues that under Section 11(2) of the Punjab Agricultural Income Tax Act, 1997, as amended in 2024, any alteration in tax rates is required to be placed before the provincial assembly during the presentation of the annual budget.

It alleges that this mandatory statutory requirement was not followed by the provincial executive.

It contends that the impugned notifications violate Articles 4, 9, 19-A, 25, 38, 77 and 127 of the Constitution, asserting that the taxation cannot be imposed or altered through executive action without legislative sanction, transparency and constitutional oversight.

The petition relies on established constitutional jurisprudence, including the landmark judgment in Mustafa Impex case, and argues that the power to determine tax rates is an essential legislative function that cannot be delegated arbitrarily to the executive branch.

It pleads that the agricultural community has been subjected to discriminatory and unconstitutional taxation measures, adversely affecting farmers’ livelihoods, economic stability and legitimate expectations protected under the Constitution.

The petition seeks directions for disclosure of all communications with the IMF, production of complete records of tax collection since July 2025, suspension of recovery proceedings, withdrawal of the impugned notifications and refund of allegedly unlawfully collected amounts.

It further asks the court to set aside impugned notifications for being unconstitutional.

Published in Dawn, May 24th, 2026

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