Constitution of the Islamic Republic of Pakistan, 1973 — Article 165

165. Exemption of certain public property from taxation..—(1) The Federal Government shall not, in respect of its property or income, be liable to taxation under any Act of Provincial Assembly and, subject to clause (2), a Provincial Government shall not, in respect of its property or income, be liable to taxation under Act of 1[Majlis-e-Shoora (Parliament)] or under Act of the Provincial Assembly of any other Province.

(2)If a trade or business of any kind is carried on by or on behalf of the Government of a Province outside that Province, that Government may, in respect of any property used in connection with that trade or business or any income arising from that trade or business, be taxed under Act of 1 [Majlis-e-Shoora (Parliament)] or under Act of the Provincial Assembly of the Province in which that trade or business is carried on.

(3)Nothing in this Article shall prevent the imposition of fees for services rendered. 2 [165A. Power of 1[Majlis-e-Shoora (Parliament)] to impose tax on the income of certain corporations, etc.__ (1) For the removal of doubt, it is hereby declared that 1[Majlis-e-Shoora (Parliament)] has, and shall be deemed always to have had, the power to make a law to provide for the levy and recovery of a tax on the income of a corporation, company or other body or institution established by or under a Federal law or a Provincial law or an existing law or a corporation, company or other body or institution owned or controlled, either directly or indirectly, by the Federal Government or a Provincial Government, regardless of the ultimate destination of such income.

(2)All orders made, proceedings taken and acts done by any authority or person, which were made, taken or done, or purported to have been made, taken or done, before the commencement of the Constitution (Amendment) Order, 1985, in exercise of the powers derived from any law referred to in clause (1), or in execution of any orders made by any authority in the exercise or purported exercise 1 Subs. by the Revival of the Constitution of 1973 Order, 1985 (P.O. No.14 of 1985), Art.2 and Sch. 2 Added by the Constitution (Amendment) Order, 1985 (P. O. No. 11 of 1985), Art. 2. of powers as aforesaid, shall, notwithstanding any judgment of any court or tribunal, including the Supreme Court and a High Court, be deemed to be and always to have been validly made, taken or done and shall not be called in question in any court, including 1[the Federal Constitutional Court,] the Supreme Court and a High Court, on any ground whatsoever.

(3)Every judgement or order of any court or tribunal, including 1[the Federal Constitutional Court,] the Supreme Court and a High Court, which is repugnant to the provisions of clause (1) or clause (2) shall be, and shall be deemed always to have been, void and of no effect whatsoever.] CHAPTER 2.– BORROWING AND AUDIT 166. Borrowing by Federal Government. The executive authority of the Federation extends to borrowing upon the security of the Federal Consolidated Fund within such limits, if any, as may from time to time be fixed by Act of 2[Majlis-e-Shoora (Parliament)], and to the giving of guarantees within such limits, if any, as may be so fixed.