The constitutional validity of the Sindh Infrastructure Development Cess (SIDC) is once again under judicial examination before the Federal Constitutional Court. During the proceedings, counsel representing the petitioners challenged the levy on the grounds that it operates substantially as a customs duty rather than a genuine charge for infrastructure development. The petitioners argued that the province cannot impose a levy whose actual character falls within the exclusive legislative competence of Parliament over customs duties.
A central argument concerns the method used to calculate the cess. Counsel highlighted that the levy is predominantly linked to the customs-assessed value of imported goods, whereas the distance-based component is nominal. An illustration presented before the Court showed that machinery valued at Rs. 100 crore could attract approximately Rs. 1.8 crore in value-based cess, while the distance component for a 600-kilometre journey would amount to only Rs. 6. The petitioners also questioned the levy under Article 25 of the Constitution, arguing that imported and locally produced goods using the same infrastructure may receive different treatment.
Another significant issue is the retrospective operation of the Sindh Development and Maintenance of Infrastructure Cess Act, 2017, extending back to July 1, 1994. The petitioners argued that retrospective legislation cannot validate a levy without addressing its underlying constitutional defects. The matter remains under judicial consideration, and the arguments reported so far should not be confused with a final determination by the Court. The eventual decision could have substantial implications for importers and businesses exposed to infrastructure cess liabilities.