IHC clears 788 tax cases, unlocks Rs506bn in disputed revenue

The Islamabad High Court enabled the recovery of approximately Rs506 billion in disputed tax revenue over the past year by deciding hundreds of long-pending tax cases and vacating stay orders that had restrained the Federal Board of Revenue from collecting dues, Dawn reported. 

According to the IHC Annual Report 2025-26, the court resolved 788 tax and revenue cases between April 1, 2025 and February 4, 2026, involving a total disputed amount of Rs506.13 billion.

The report states that prolonged litigation in tax matters had kept substantial public revenue tied up in courts, affecting fiscal stability and economic activity. To address the backlog, the chief justice introduced administrative and judicial measures in line with the National Judicial (Policy Making) Committee guidelines.

A key step was the formation of two specialised division benches dedicated to tax and revenue matters to ensure focused hearings and faster resolution of high-value disputes. One bench comprised Justice Muhammad Azam Khan and Justice Inaam Ameen Minhas, while another included Justice Babar Sattar, Justice Sardar Ejaz Ishaq Khan and later Justice Saman Rafat Imtiaz.

Bench-wise data shows that the bench led by Justice Azam Khan and Justice Minhas decided 178 cases involving around Rs456.18 billion. The other tax benches collectively disposed of 610 cases, covering more than Rs49.9 billion.

With the disposal of these cases, stay orders blocking recovery were lifted, enabling the FBR to proceed with tax collection.