FCC rules income tax on immovable properties ‘confiscatory in nature’

The Federal Constitutional Court (FCC) ruled that Section 7E of the Income Tax Ordinance 2001, which imposes taxes on non-income-generating immovable properties, is 'confiscatory in nature' and violates constitutional principles. The court criticized the provision for enabling discriminatory taxation and causing undue financial burdens on taxpayers, particularly as it overlaps with provincial fiscal authority and risks double taxation.