Continuation of Super Tax draws court's ire
Pakistan
Justice Mandokhail remarked that this story would become very lengthy
ISLAMABAD (Dunya News) – Justice Aminuddin Khan-led constitutional bench on Tuesday took up the case related to imposition of the Super Tax in the Supreme Court (SC).
During the hearing, Justice Muhammad Ali Mazhar remarked that the Super Tax was imposed for a specific purpose, questioning whether the Super Tax would continue indefinitely after being imposed once.
At the outset of the hearing, the counsel for the companies, Makhdoom Ali Khan, began his arguments by stating that the Super Levy Tax was imposed by the government in 2015. The purpose of the tax was stated to be the rehabilitation of areas affected by Operation Zarb-e-Azb. The government had imposed the Super Tax for a one-time period through a money bill in 2015, and it remained in effect from 2015 to 2022.
He stated that the initial estimate was to collect Rs. 80 billion, but it is unknown how much the government collected under the Super Levy Tax.
Justice Jamal Mandokhail asked what the government's plan was for the rehabilitation of the areas affected by the operation. Was any estimate made for the rehabilitation of the affected areas? Can a tax on services be imposed through a money bill?
Khan argued that the government had already collected income tax on revenue. The name "Super Tax" was given to avoid double taxation. Social welfare has now been transferred to the provinces, adding that the Super Tax was imposed for one year, and no details about the recovery and expenditure of the Super Tax were provided in any speech by the Finance Minister. He suggested that the government should be asked how much tax was collected under the Super Tax.
Justice Mandokhail remarked that this story would become very lengthy. Justice Muhammad Ali Mazhar stated that the Super Tax was imposed for a specific purpose and for a one-time period. He questioned whether the Super Tax would continue indefinitely after being imposed once.
Khan argued that the rehabilitation of areas affected by the operation is a local and provincial issue.
Justice Aminuddin raised the objection that how can funds from the national exchequer be spent without the consent of the provinces? FBR's counsel, Raza Rabbani, stated that the war against terrorism is an ongoing process, and the victims of terrorism were displaced as a result of the operation.
The defendant questioned whether terrorism had ended by 2020. He asked if the government had stopped collecting the Super Tax in 2020.
Justice Jamal Mandokhail stated that the Super Tax was for the rehabilitation of those affected by the operation. He acknowledged that terrorism is a daily reality. He asked how many people were displaced during the operation and from which areas.
Later, the court adjourned the hearing of the Super Tax case until March 11 (tomorrow).
