Islamabad:
A member of a Constitutional Bank (CB) of the Supreme Court asked Tuesday if the federal government distributes the income of the super imposed between the provinces, and if said distribution is allowed according to the law.
The five-member bank, led by Judge Aminuddin Khan, resumed to listen to a series of requests that challenge the imposition of a super taxes introduced in 2016 for the rehabilitation of internal displaced persons (IDP) during the ZARB-E-AZB operation. The operation, launched by the Government led by PML-N in 2014, aimed to eliminate terrorist strengths in northern Wazirist.
During the hearing, the senior lawyer Makhdoom Ali Khan, who represents the companies that dispute the tax, began their arguments by distinguishing between the Income Tax and the Super Tax. He said that the Income Tax is applied regardless of the income level, and that all fiscal income goes to the National Treasury without a designated purpose.
“According to section 113 of the Income Tax Ordinance, even the minimum income is subject to tax,” he said.
Judge Jamal Khan Commandkhail questioned whether the federal government distributes the tax revenues of the super among the provinces, Khan replied that, according to a speech by the then Minister of Finance, the super taxes was destined only to the rehabilitation of the IDP.
“The Super Tax was first introduced in 2016, it was extended for one year in 2017, and then became indefinite in 2019 through the use of the word ‘onwards,'” he added.
Khan argued that the tax was never intended to distribute among the provinces, and said that a single rupee has not yet been spent on the rehabilitation of the IDP.
Judge Jamal Khan Commandkhail again asked the additional attorney general if an amount, either RS8 or RS8 billion, can be distributed in such a way.
Previously, Judge Aminuddin Khan commented that, in the absence of a key lawyer, he had asked another lawyer to proceed with the arguments. However, the lawyers responded that, since Makhdoom Ali Khan is a main defender, they would wait for the end before presenting their own arguments.
Judge Khan asked Makhdoom Ali Khan to try to conclude his arguments soon. The lawyer Makhdoom Ali Khan declared that he follows the example of his friend Khawaja Haris and will try to conclude his arguments as quickly as possible.
Smiling, Judge Jamal Khan Commandkhail told Makhdoom Ali Khan that he should not follow his friend, Khawaja Haris, in this matter. The Supreme Court will resume the hearing today.
