IHC Clears Rs506 Billion in Tax Disputes

The Islamabad High Court (IHC) has facilitated the recovery of nearly Rs506 billion in contested tax revenue over the past year by adjudicating hundreds of long-pending tax disputes and lifting interim stay orders that had previously prevented the Federal Board of Revenue (FBR) from enforcing recovery proceedings.

As detailed in the IHC Annual Report 2025–26, the court disposed of 788 tax and revenue matters between April 1, 2025 and February 4, 2026, involving an aggregate disputed amount of Rs506.13 billion.

The report notes that extended litigation in fiscal matters had effectively immobilised substantial public funds in judicial processes, creating implications for revenue flow, fiscal discipline, and broader economic stability. In response to this backlog, the Chief Justice implemented targeted administrative and judicial reforms in alignment with the National Judicial (Policy Making) Committee’s framework.

A significant institutional measure included the constitution of two dedicated division benches exclusively assigned to tax and revenue cases, aimed at streamlining hearings and accelerating the adjudication of high-value disputes. One bench consisted of Justice Muhammad Azam Khan and Justice Inaam Ameen Minhas, while the second comprised Justice Babar Sattar, Justice Sardar Ejaz Ishaq Khan, and subsequently Justice Saman Rafat Imtiaz.

According to bench-specific statistics, the division bench headed by Justice Azam Khan and Justice Minhas resolved 178 cases representing approximately Rs456.18 billion in disputed tax claims. The remaining tax benches collectively concluded 610 matters, accounting for over Rs49.9 billion.

Following the disposal of these cases, previously granted stay orders were vacated, thereby authorising the FBR to initiate and proceed with lawful tax recovery actions.