Islamabad High Court has ruled illegal the Rs. 32 billion demand notices issued by Pakistan Electronic Media Regulatory Authority to 23 television channels, declaring them unjustified and without legal basis. The notices, sent in March 2022, sought to collect five percent of the channels’ annual advertisement revenue as a regulatory levy.
The Pakistan Broadcasters Association, along with several media organizations including Independent Media Corporation, challenged the demands in court. The IHC had previously maintained a stay on the collection of these fees pending the court’s final decision. Justice Saman Rafat Imtiaz issued a 29-page detailed ruling, emphasizing that collecting revenue prior to the implementation of the PEMRA Rules, 2009, was unlawful.
The court held that PEMRA failed to demonstrate a reasonable or direct link between the five percent charge on advertisement income and the expenses incurred for regulatory oversight. Most of the expenses cited in PEMRA’s report could not be directly associated with supervision of licensed broadcasting entities, making the demand arbitrary.
The verdict further clarified that for a regulatory fee to be legally enforceable, it must have a clear connection to the administrative framework and oversight functions under which licenses are issued and regulated. The court noted that using such collected funds primarily to increase revenue or to finance projects unrelated to regulatory responsibilities undermines the legal basis of the fee.
In conclusion, the IHC determined that the justification for imposing five percent of annual advertisement revenue as a levy on TV channels was insufficient. The decision upholds the legal principle that regulatory fees must be proportionate and directly linked to the authority’s oversight and administrative duties.
This ruling is seen as a significant step in clarifying the limits of PEMRA’s authority in financial matters and reinforces the rights of television channels to challenge regulatory demands that lack legal justification. It also highlights the importance of accountability and transparency in media regulation and public administration in Pakistan.
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