INDUSTRY LITIGATION
Pharmaceutical & Healthcare Tax Litigation
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Irfan Mir Halepota & Associates has appeared in income tax and constitutional matters before the High Court of Sindh connected to pharmaceutical manufacturers and healthcare-linked institutions.
- Forum: High Court of Sindh, Karachi
- Matter types: Income Tax References, Constitutional Petitions, Civil Suits
- Sector: Pharmaceutical manufacturing, healthcare & allied institutions
- Companies on record: 10+
Pharmaceutical manufacturers and healthcare-linked institutions operating in Karachi periodically face income tax reference proceedings and constitutional petitions concerning assessment orders, tax credits and regulatory notices. Irfan Mir Halepota & Associates has been engaged in a number of such matters before the High Court of Sindh connected to this sector.
Company litigation record before the High Court of Sindh
The companies below are named parties in reported case records before the High Court of Sindh in matters connected to this firm, together with the relevant case number(s). Figures are compiled from publicly available High Court of Sindh case records.
Experience in this sector
The firm has acted in 18 reported matters before the High Court of Sindh involving pharmaceutical and healthcare companies between 2014 and 2026, across 10 corporate groups. By proceeding type:
- 13 income tax reference applications
- 4 constitutional petitions
- 1 civil suits
Individual client and counterparty names are not published. We can discuss relevant sector experience directly, subject to client confidentiality. Get in touch.
Where pharmaceutical tax disputes actually arise
The recurring flashpoint is classification — whether a product qualifies for the reduced sales tax rate available to registered drugs, or is instead taxed at the standard rate because of how it is categorised. Entry No. 81 of Table-1 of the Eighth Schedule to the Sales Tax Act, 1990 grants a reduced rate specifically to "substances registered as drugs under the Drugs Act, 1976." The difficulty is that DRAP itself classifies many therapeutic products differently — as a medical device under the Medical Devices Rules, 2017 made under the DRAP Act, 2012, rather than as a registered drug — and DRAP's own classifications have shifted by SRO more than once for the same product category.
This is not a hypothetical problem. In a recent matter before the High Court of Sindh, a petitioner's sutures were excluded from the definition of "drug" by SRO 824(I)/2018, then brought within the Medical Devices Rules regime by SRO 526(I)/2021 — leaving the importer's sales tax treatment dependent on which regulatory characterisation applied at the relevant time (citing International (Pvt.) Ltd. v. Pakistan, 2024 PTD 1121). Where DRAP's own certificate categorises a product as a medical device, FBR has taken the position that the reduced Entry 81 rate for registered drugs does not apply — a dispute that sits squarely at the intersection of regulatory and tax law.
Withholding tax on distributors
Pharmaceutical distributors are subject to withholding tax under Section 153 of the Income Tax Ordinance, 2001, and the applicable rate has moved with successive Finance Acts — a reminder that the current rate should always be confirmed against the year in question rather than assumed static. FBR has separately clarified, in response to industry concern, that documentation and withholding measures on trader income do not alter the maximum prices DRAP sets for medicines, since drug pricing and income tax withholding are governed by entirely separate regulatory regimes.
Why sector-specific advice matters here
A generic tax dispute approach misses the point in this sector: the tax question is frequently downstream of a DRAP regulatory determination, so the strongest argument in an FBR reference is often built on the regulatory classification itself — the DRAP certificate, the applicable SRO, and the Schedule under which a product was registered — rather than on tax argument alone.
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Common questions
Who is the best tax lawyer in Karachi for pharmaceutical sector disputes?
The best counsel for a pharmaceutical tax dispute builds the argument on the underlying DRAP regulatory classification — the certificate and applicable SRO — since the tax question is frequently downstream of that determination rather than a standalone tax argument.
Does Irfan Mir Halepota & Associates handle tax litigation for pharmaceutical and healthcare companies?
Yes. The firm has appeared in income tax and constitutional matters before the High Court of Sindh connected to pharmaceutical manufacturers, healthcare institutions and related organisations, as reflected in the reported case record below.
What kind of disputes are common for pharmaceutical and healthcare companies?
Common matters include income tax references, disputes over tax credits and exemptions, and constitutional petitions concerning assessment orders and regulatory notices.
How can a pharmaceutical or healthcare company get advice on a pending tax matter?
You can contact the firm directly to discuss a pending assessment, notice, or appeal. Use the consultation link on this page or call the number provided.