IHC declares PEMRA’s annual advertising revenue collection unlawful

 

ISLAMABAD: The Islamabad High Court has issued a ruling in the case against Pakistan Electronic Media Regulatory Authority’s (PEMRA) demand notices for collecting 5 percent of annual revenue from TV channels as advertising fees, ARY News reported.

According to reports, the court declared PEMRA’s system of collecting annual advertising revenue without proper justification as illegal. All controversial demand notices issued by PEMRA have been struck down.

Revenue collected under PEMRA rules before 2009 is illegal and unauthorized, the court ruled.

The court clarified that regulatory fees are only valid if they are related to PEMRA’s expenses or services. PEMRA could not prove that its collection of annual advertising revenue corresponded to regulatory costs.

The judgment noted that most of the annual advertising revenue was being collected primarily to raise general revenue. Collecting such fees from channels for ordinary expenses, the court said, is unfair.

The Islamabad High Court further stated that amendments under the PEMRA (Amendment) Act 2023 will not apply to past collections.

The court ruled that demand notices are essentially recovery notices and do not automatically authorize the suspension or cancellation of licenses.

Issuing a demand notice does not require prior show-cause. However, before any license suspension or cancellation, proper show-cause procedures must be followed, the court emphasized.

The written judgment was issued by Justice Saman Rafat Imtiaz of the Islamabad High Court.