The judges debate non-discrimination in tax matters and clarify that the supertax is independent of the final tax regime
The Supreme Court of Pakistan. PHOTO: APP/FILE
Supreme Court Justice Muhammad Ali Mazhar noted that the supertax law clearly defines the threshold of taxable profit and stated that “companies must pay only what is legally owed.”
A five-member bench heard petitions challenging the super tax on Thursday. The bench, headed by Justice Aminuddin Khan, included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Ayesha Malik and Justice Hasan Azhar Rizvi.
At the beginning of the session, lawyer Farogh Naseem concluded his arguments, representing several companies challenging the supertax.
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During the proceedings, Justice Mazhar observed that the argument put forward by the petitioners seemed to suggest imposing taxes even on companies that were not required to pay.
Justice Mandokhail intervened and noted: “You mean there should be no discrimination.” Justice Mazhar clarified that once a tax is imposed under the final tax regime, it cannot be imposed again, although the super tax operates as a separate tax category.
Lawyer Aziz Nishtar, representing Pakistan Tobacco Company, argued that Article 18 of the Constitution gives companies the right to operate freely and that the government has failed to create a conducive business environment.
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He stated, “They are taxing us even without making a profit,” adding that the government often imposes the supertax when it urgently needs revenue. Justice Mazhar questioned whether widening the tax net could improve the business climate.
Advocate Ejaz Ahmed argued that the Finance Bill had been passed without meeting the requirements of Article 73 and that the government had imposed the super tax immediately without any policy statement.
The hearing was adjourned until Friday, when the court will continue deliberating on the supertax issue.
