Civil Aviation Authority challenges FBR in Supreme Court over Rs. 50 billion tax dispute

The Civil Aviation Authority (CAA) has taken a Rs. 50 billion tax dispute with the Federal Board of Revenue (FBR) to the Supreme Court. The Sindh High Court suggested resolving the issue through the Alternate Dispute Resolution Committee (ADRC), but the CAA refused, claiming it should be exempt from taxes under the Civil Aviation Act, 2023. The FBR disagrees, saying the Income Tax Ordinance, 2001 takes precedence. The Supreme Court will now decide, while the FBR expects a Rs. 9.5 billion advance tax from the CAA by September 25. This case may impact future tax rules for regulatory bodies.

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