ISLAMABAD: The Federal Constitutional Court of Pakistan has upheld the increase in excise duty on minerals under the Balochistan Finance Act 2020, rejecting a petition filed by Attock Cement against the provincial government.
The Federal Constitutional Court said a law can have both federal and provincial aspects, and on this basis, the Balochistan law is constitutional.
The 15-page written judgment was issued by Justice Amir Farooq, while the bench hearing the case also included Justice Rozi Khan Brich.
The court invoked the “double aspect” principle, noting that while excise duty is generally considered a federal matter, some cases may involve provincial interest and authority.
The judgment stated that the excise duty under the Balochistan Finance Act 2020 aims to support labor welfare, which falls under public interest.
Labor welfare is a provincial subject, giving the provincial assembly the right to legislate in this area.
The court remakred that provincial legislation does not remove federal authority but is consistent with the principle of constitutional harmony.
It added that provincial laws complement the federal system rather than conflict with it.
Attock Cement had argued that the amendment to excise duty under the Balochistan Finance Act 2020 is unconstitutional, claiming only the federal government can levy such duties.
The petitioner also argued that the act led to a significant increase in excise duty rates on minerals.
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After reviewing all arguments, the Federal Shariat Court rejected the petition and upheld the provincial government’s position.
