BAP’S ANWAARUL HAQ KAKAR NAMED AS CARETAKER PM In partnership with
Profit
Sunday, 13 August, 2023 I 25 Muharram, 1445
Rs 15.00 | Vol XIV No 43 I 8 Pages I Islamabad Edition
PRESIDENT APPROVES ADVICE; KAKAR g PM SHEHBAZ, RAJA RIAZ REACH CONSENSUS OVER GETS PM’S SECURITY PROTOCOL KAKAR’S NAME IN FINAL ROUND OF CONSULTATIONS
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LAHORE
SALEEM JADOON
RESIDENT Arif Alvi has appointed Senator Anwaarul Haq Kakar from Balochistan as the caretaker prime minister of Pakistan after both outgoing Prime Minister Shehbaz Sharif and Opposition leader Raja Riaz reached a consensus on the name of Kakar in the final round of consultations held at Prime Minister Office. Anwaarul Haq Kakar will take oath of his office on Sunday (tomorrow). According to the notification, President Alvi gave approval to Kakar’s appointment under Section 224-1A of the Constitution. Kakar, co-founder of the Balochistan Awami Party (BAP), will be the 8th interim prime minister of Pakistan. The Prime Minister’s Office (PMO) and Opposition leader earlier Saturday announced that Senator Kakar was nominated as the caretaker prime minister of Pakistan. The much-anticipated announcement came after Prime Minister Shehbaz Sharif and Opposition Leader Raja Riaz evolved a consensus over Kakar’s name for the coveted post during their third and final meeting in Islamabad. The prime minister and the leader of opposition then jointly signed the advice for the appointment of the caretaker PM and sent it to President Alvi for approval, said a press release issued by the PM Office, adding the consultation process for the appointment of the caretaker prime minister was amicably completed. On the occasion, the prime minister thanked the leader of opposition for the role in the parliament during the last 16 months and the cooperation extended in the consultation process. Earlier, in a media talk outside the Prime Minister’s House after meeting PM Shehbaz, Riaz also confirmed that Kakar had been picked to head the interim set-up. “We had earlier decided that the caretaker PM should be someone from a smaller province and a non-controversial personality. Our aim was to remove the sense of deprivation in small provinces.
Talking to the media men outside the PM House after meeting PM Shehbaz Sharif, Raja Riaz confirmed the decision, saying “We had earlier decided that the caretaker prime minister should be someone from a smaller province and a noncontroversial personality. The aim was also to remove the sense of deprivation of small provinces. We reached a consensus that Anwaarul Haq Kakar will be the caretaker PM.” He further said “I had given this
name and the PM Shehbaz Sharif has consented to this name … I and the PM have signed on the summary.” Raja Riaz also told journalists that Kakar will take oath as the head of the interim set-up tomorrow (Sunday). “A discussion on the caretaker cabinet was not held in my meeting with PM Shehbaz today,” he added. Raja Riaz, however, refused to share with the media the names of remaining five candidates for the PM’s post.
Riaz said he, by proposing the interim PM’s name, had performed his duty as opposition leader in the Lower House of the parliament. When asked about the caretaker cabinet, he said no discussion was held today on it as the prerogative rests with the caretaker prime minister to finalize the names of the caretaker cabinet. It has been three days since the National Assembly was dissolved, but it has yet to be decided that who will be the caretaker prime minister. President Dr Arif Alvi had also asked both PM Shehbaz and Opposition leader Raja Riaz to give a consensus name for caretaker prime minister today (Saturday). KAKAR GETS PM SECURITY PROTOCOL: Anwaarul Haq Kakar, the interim Prime Minister-elect, has been provided the PM’s Security Protocol Saturday following his appointment. The PM security squad also reached the residence of Anwaarul Haq Kakar. The PM’s Security Protocol is a set of security measures designed to ensure safety and protection of the Prime Minister. It includes a security detail, armoured vehicles, and other protective measures.
PTI questions interim PM’s nomination process
LAHORE: The Pakistan Tehreek-e-Insaf (PTI) on Saturday raised questions on the nomination process of Senator Anwaarul Haq Kakar as the caretaker prime minister, expressing hope he will hold elections within the constitutionally-mandated timeframe. The PTI spokesperson underscored importance of upholding constitutional protocols, transparency, and timeliness in the upcoming elections. He underlined the weighty responsibility carried by Kakar in his new role, adding that the party hopes that the Balochistan Awami Party (BAP) leader will ensure a fair and transparent electoral process within the stipulated three-month period, safeguarding the democratic and constitutional rights of the citizens. “For the implementation of the spirit of the Constitution and the sustenance of democracy,” the spokesperson stressed, “free, impartial, and transparent elections are of paramount importance.” Earlier, the Prime Minister’s Office (PMO) said that Kakar was named the interim PM following the final round of consultation between outgoing premier Shehbaz Sharif and Leader
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of Opposition in the National Assembly (NA) Raja Riaz. The PMO statement stated that the final consultation session was successfully completed and the two leaders agreed on Kakar’s name. “The prime minister and leader of the opposition jointly signed the advice and it was sent to the president,” it said. Soon after, President Arif Alvi also approved the appointment of Senator Anwaarul Haq Kakar under Article 224(1A) of the Constitution. The PTI spokesperson further highlighted the pivotal role of the caretaker government in providing an equitable environment for all political parties to engage in their election campaigns. At present, the PTI spokesperson noted, Pakistan’s leading political party, PTI, is under the “reproach” of the state, adding that thousands of PTI workers are imprisoned in jails and being subjected to the worst revenge. Most of the fundamental rights of the citizens have been practically suspended and the provision of these rights is limited to the workers affiliated with certain political groups, he pointed out.
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Nawaz to be PML-N’s prime minister candidate ISLAMABAD
STAFF REPORT
Coinciding with dissolution of National as well as Sindh and Balochistan assemblies and the country’s transition to interim setup for the general elections, Pakistan Muslim League-Nawaz (PML-N) President Shehbaz Sharif on Saturday announced that former prime minister Nawaz Sharif will be the party’s candidate for prime ministers. Speaking at a press briefing at the Prime Minister’s House, Shehbaz Sharif claimed that the amendments to the Election Act have cleared Nawaz Sharif’s of any disqualification, removing any obstacle to his “return to the country and power.” “In my capacity as president of the party, I have nominated Nawaz Sharif as the candidate for prime minister from the PML-N,” Shehbaz said. He emphasised that the final decision on the date of general elections rests with the Election Commission of Pakistan (ECP), adding that his party wanted to conduct
the polls as soon as possible. On the occasion, PML-N leader Ishaq Dar stated that Nawaz Sharif’s disqualification period ended on July 26. In an interview earlier this week, the former premier had stated Nawaz Sharif is set to return to Pakistan in
September and will face his pending court cases. In an interview with a private television channel, he said that after the caretaker government was formed, he would go to London to discuss “plan” for his return with his brother. The premier said that Nawaz would lead the election campaign of his party and would be the next prime minister for the fourth time if PML-N won the next election. Nawaz, who was convicted by an accountability court before the 2018 general elections in graft cases, went to London to receive medical treatment in 2019, and has been staying there since then. Last month, Nawaz reached Dubai and met Pakistani politicians. His arrival in the Gulf emirate generated a debate in the media about his return to Pakistan. The PML-N supremo is convicted in the Al-Azizia and the Aveinfeild Apartment references filed by the National Accountability Bureau (NAB) in the aftermath of the Panama Papers case. His appeals are pending in the relevant courts.
Balochistan Assembly dissolved as governor signs off CM’s advice QUETTA
STAFF REPORT
Balochistan Governor Wali Kakar on Saturday dissolved the provincial assembly following advice sent by Chief Minister Abdul Qadus Bizenjo. The Balochistan Governor signed the summary sent to him for dissolution of the provincial assembly and a notification in this regard has been issued. Earlier on Saturday, Balochistan CM Mir Abdul Quddus Bizenjo signed the advice to dissolve the provincial assembly and sent it to the Balochistan governor for his approval. A notification issued by the governor said: “As advised by Mir Abdul Quddus Bizenjo, the Chief Minister of Balochistan and in exercise of the powers conferred upon me under Article 112(1) of the Constitution of the Islamic Republic of Pakistan,1973, I, Malik Abdul Wall Khan Kakar, Governor Balochistan hereby dissolve the Provincial Assembly of Balochistan, this 12th day of August, 2023 at 5pm.” In an official statement, the governor’s spokesperson stated that following the dissolution of the provincial assembly, the cabinet had been similarly dissolved. However, he clarified that Bizenjo will continue to serve as the chief minister until the appointment of the caretaker chief executive. Like the National Assembly, both Sindh and Balochistan assemblies held their inaugural sessions on August 13, 2018, following their election in the July 25 general elections. The National Assembly was dissolved on August 9, three days before completion of its term while Sindh Governor Kamran Tessori dissolved the Sindh Assembly on the advice of Chief Minister Syed Murad Ali Shah on Friday, a day before completion of its five-year term. The Balochistan Assembly completed its five-year tenure on Saturday (August 12) and the chief minister signed the summary of dissolution on the last day of the five-year term of the legislature. According to the Constitution, if any assembly completes its term, the next general election would be held in 60 days. But if the term is not complete, even by a single day, the elections would be held in 90 days. It is to be mentioned here that the assemblies of Punjab and Khyber Pakhtunkhwa were dissolved in January this year. However, the Election Commission of Pakistan (ECP) did not hold the election in the provinces in 90 days. The elections for these two provincial assemblies also expected to be held along with the other assemblies in the next general election. Thankful to MPAs, Coalition partners, Opposition members, Bureaucracy for unwavering dedication In a series of his tweets, the outgoing CM Bizenjo wrote: “A grateful farewell as assembly dissolves.” “As the Balochistan Assembly concludes its tenure, I extend heartfelt gratitude to all MPAs, Coalition partners, Opposition members, Bureaucracy & above all my people for their unwavering dedication. Together, we navigated challenges, exemplifying true democratic spirit. In the face of floods & Governance obstacles, we stood strong. Despite economic challenges, we ensured development reached every corner of Balochistan. Every MPA received equal representation in PSDP, reflecting our commitment to unity & progress. “In less than 02 years, we have made every effort to promote Gender equity, improve & develop the province’s infrastructure, ensure health care, education facilities & bring good governance to the province. At the same time, we tried to … “Improve the economy of the province by utilizing the mineral wealth & provided practical assistance to the farmers to contribute to the agricultural sector of the province. “Opening avenues for international investment with Historic Rekodic settlement, Health Card, First Public Transport Service, Revival of sports in the province, Local bodies elections, Establishment of new universities, increase in grants to universities, Establishment of Girls Cadet Colleges, permanent status to employees along with providing number of jobs, contract appointment of medical staff, digitization of development schemes. Green tractor scheme & above all relentless advocacy of the province in the Federal are just a few of the achievements. “Our journey was tough, but our resolve was stronger. As we bid farewell to this.”
Amendments to Super Tax in Finance Act 2023 challenged
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ROUND 2 BETWEEN PETITIONERS, FBR HAS COMMENCED AT IHC PROFIT
DANIYAL AHMAD
The Islamabad High Court (IHC) has granted petitioners a reprieve in the form of a stay order, forestalling the implementation of the super tax as stipulated by the Finance Act 2023. The petitioners have challenged the retrospective application of the newlyminted tax slabs for the tax year 2023, which have been imposed upon them brought forth through amendments in the Finance Act. Furthermore, they have implored the IHC to mandate the collection of the super tax in congruence with its ruling on the application of the super tax for the tax year 2022 in Fauji Fertilizer Company Limited v Federation of Pakistan. For those interested in the verdict in the case, Profit has covered the matter in detail previously: “When they introduced the super tax as part of Amendment 4C to the Income Tax Ordinance (2001), they specified the rates at which the tax would be paid,” elucidates Asad Ladha, Partner at Raja Mohammad Akram & Co and one of the petitioners. “Now, everyone was expecting that if you were in the highest income slab, then you would be required to pay 4%, as was previously mandated,” Ladha continues. “However, what transpired was that upon the
conclusion of tax year 2023, they brought forth an amendment on 1st July 2023, whereby they revised the income slabs – and applied this retrospectively,” Ladha adds. “Our argument, as before, is that you cannot apply a tax rate retrospectively if there is already an expectation that a certain rate must be paid – if it must be paid at all,” Ladha asserts. “Thus, this forms the new basis for our challenge.” So, what did the Finance Act 2023 do to the super tax? The Finance Act 2023’s changes to the Super Tax In 2022, the Government introduced the concept of a super tax on high-earning individuals through the Finance Act. Slabwise rates were prescribed for the 2022 tax year, with a maximum rate of 4%. For certain specified sectors, an enhanced rate of 10% was prescribed for the 2022 tax year only, while for banking companies, a 10% super tax was to be applicable for the 2023 tax year. The higher rate of 10% was applicable in both cases only where the income exceeds Rs 30 crores. Constitutional petitions were filed before different High Courts in relation to the retrospective application of the super tax for the 2022 tax year and the enhanced rate applicable for specified sectors. The High
Court of Sindh held that it was inapplicable for the 2022 tax year and declared that the enhanced rate for certain specified sectors in excess of 4% was ultra vires, being discriminatory. This decision is currently subjudice before the Supreme Court. Similarly, the Islamabad High Court (IHC) asked for the super tax to be written down. The Lahore High Court (LHC) held that the application of a higher rate of 10% on specified sectors was ultra vires, being discriminatory; however, LHC upheld the levy of super tax for the 2022 tax year. Through the Finance Act 2023, the Government introduced new slab rates for super tax for taxpayers with income in excess of Rs 35 crores. As a result, the highest slab rate of 10% is applicable to taxpayers from all sectors with income in excess of Rs 50 crores – thus eliminating discrimination. Perhaps in an attempt to avoid allegations that it was discriminating against certain sectors, the Government decided to discriminate against everyone. “Our clients earn in billions,” states Ladha. “Previously, they fell under the highest tax bracket and were subject to a 4% levy. They remain in the highest bracket but are now subject to a staggering 10% levy,” exclaims Ladha. “For us, the situation is quite simple,” he continues. “However, for companies that
have not experienced a change in their levy, our argument might not hold water.” “If they were already expecting to pay 2%, 3%, or 4%, and that remains unchanged, then there is no issue,” explains Ladha. “However, if their expected percentage levy has changed – for example, if they were previously paying 2% and now have to pay 4% – then that becomes a point of contention. How can you apply a difference of 2% retrospectively?” “Different entities – depending on their income – might have different grounds for argument,” adds Ladha. “But the principle remains unchanged: a retrospective increase in the rate of tax cannot be allowed.” To extrapolate from Ladha’s example: all companies that have earned income in excess of Rs 35 crores can challenge the super tax on the same grounds as Ladha’s client. This is because their levy has changed from 4% to either 6%, 8%, or even the 10% that Ladha is petitioning against. Can companies across Pakistan anticipate reaping benefits from Ladha’s petition and IHC’s subsequent stay order in the same capacity as they could from IHC’s writedown of super tax in 2022? This question is an important one because companies, irrespective of where they are in Pakistan, can avail themselves of the reprieve granted by the IHC in its judgement in Fauji Fertilizer Company Limited v Federation of Pakistan. National reprieve, or for Islamabad
based companies only? “It will be applicable to those whose tax returns are filed in Islamabad and will come to Islamabad. Those registered with the regional trade office in Karachi, for example, would go to the Sindh High Court, and so forth,” Ladha expounds. Why is this stay order different to the IHC’s previous ruling? They are, after all, both decisions by the IHC. “In a final judgement, the answer is affirmative,” elucidates Ladha. “However, when it comes to interim orders, the response is negative.” At present, the stay order is an interim order. “The interim order is specific to an individual,” he continues. “Companies are required to approach the court of relevant jurisdiction for interim orders.” Can Ladha, and his fellow petitioners win the case like they did before? What happens next? “Ultimately, the Islamabad High Court is bound by its own judgement,” explains Ladha. “Look, I have given a decision. I am bound by the decision that this retrospectively cannot be allowed,” Ladha paraphrases the IHC’s stance on the current petition. “This is the basis on which they have given the stay order,” Ladha continues. However, Ladha does anticipate that the IHC’s previous decision itself might be called into question again as he expects the Federal Board of Revenue to challenge the IHC’s previous decision in an inter-court appeal any day.