ISLAMABAD: The Federal Constitutional Court has declared the increase in excise duty under the Balochistan Finance Act 2020 as constitutional, dismissing a petition filed against the Balochistan government.
A two-member bench comprising Justice Aamer Farooq and Justice Rozi Khan Barrech heard the case. A 15-page written verdict, authored by Justice Aamer Farooq, was issued on Monday.
The court rejected the petition filed by Attock Cement, accepting the principle of “dual aspect”, under which a law may have both federal and provincial dimensions.
In its written judgment, the court stated that a single law can have both federal and provincial aspects, therefore the legislation cannot be declared unconstitutional. It observed that the excise duty imposed on minerals is meant for labour welfare, which falls under provincial jurisdiction.
The verdict said the purpose of the duty is to protect public interest, adding that labour welfare is a provincial subject. Hence, the provincial assembly has the authority to legislate in this regard. The court clarified that the provincial law does not override federal powers but operates in constitutional harmony.
The petitioner had argued that the amendment introduced through the Balochistan Finance Act 2020 was unconstitutional, claiming that imposing excise duty is a federal authority, and that the provincial assembly lacked the power to legislate on the matter.
Under the Balochistan Finance Act 2020, the rate of excise duty on minerals was significantly increased, which had been challenged by the petitioner.