Islamabad High Court’s Major Decision, Path Cleared for Recovery of Billions in Taxes

Islamabad (Turkiye Khabar) The Islamabad High Court has lifted the stay order issued against the recovery notice of billions of rupees in taxes from the Zarai Taraqiati Bank, after which the path for tax recovery has been cleared. The court issued this decision on a petition filed by the Federal Board of Revenue, in which a request was made to vacate the stay order following an amendment in the law. The decision was announced by a bench comprising Justice Arbab Muhammad Tahir and Justice Khadim Hussain Soomro. The high court, while lifting the stay order issued against the recovery notice dated March 12, 2026, held that after the enforcement of the new law, such petitions have automatically become ineffective. According to the decision, the stay order issued on March 17, 2026 has also been withdrawn and no further hearing remains in this matter. The court clarified that the Zarai Taraqiati Bank may approach the relevant forum in accordance with the law, while after the removal of the stay order, it has become possible for the FBR to recover billions of rupees in taxes. It is worth mentioning that earlier the court had issued a stay order on the petition of the Zarai Taraqiati Bank; however, after the new legal amendment, the bank’s petition has been declared legally ineffective.