Workers Welfare Fund Amendments and Finance Acts - August 25, 2011

Lahore High Court has termed the amendments in Workers Welfare Ordinance, introduced through Finance Acts of 2006 and 2008, as unconstitutional and has struck these down. The Government had introduced changes in section 2 and 4 of the Workers Welfare Fund Ordinance through sections 12 and 14 of Finance Acts 2006 and 2008 respectively. These amendments were said have increased the amount of contribution from establishments to the Workers Welfare Fund and many private limited companies had challenged these amendments.

The petitioners were of the view that these amendments were out of the purview of Article 73 of the Constitution as this article relates only to the money bills (Finance Acts). The petitioners were of the view that Government should have introduced these amendments through regular legislative procedure provided under article 70 of the constitution. However, the defendant (Federal Board of Revenue) was of the view that WWF was a tax and fell under the purview of Money Bill as it was also a compulsory exaction of money by FBR.

Source: Published in The Express Tribune, August 25th, 2011.