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Petition Filed in LHC Against Tax Exemption for Bureaucrats and Military Personnel

A petition has been submitted to the Lahore High Court, challenging the income tax exemption on property sales granted to retired and serving military personnel and bureaucrats in the fiscal year 2024-25 budget.

he petitioner, Mashkoor Hussain, represented by Advocate Nadeem Sarwar, argues that this tax exemption violates the equality clause of the Constitution, which asserts that “all persons are equal before the law and are entitled to equal protection of the law.”

Hussain contends that the exemption constitutes an exploitation of citizens, as the ruling elites have misused their positions to secure this benefit, while ordinary citizens, who fund state operations through their taxes, are burdened with heavy taxes. He further argues that according to Article 8 of the Constitution, laws that are inconsistent with fundamental rights are void. Thus, the amendment to the Income Tax Ordinance 2001, which grants this exemption to bureaucrats and military personnel, violates several constitutional articles.

The petitioner has requested the court to annul Section 236-C of the Finance Act 2024, which provides this tax exemption to bureaucrats and military personnel, with the exception of war-wounded armed forces personnel and martyrs.

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