Islamabad:
The Supreme Court raised strong questions on the imposition of the government of super taxes, and the judges warn that the burden of such taxes finally fell on common citizens and discouraged taxpayers.
A constitutional bank of five members, headed by Judge Aminuddin Khan, resumed the hearing in the case that challenges the super tax. During the hearing, lawyer Astma Hamid appeared on behalf of the Federal Income Board (FBR).
Sitting at the bank, Judge Muhammad Ali Mazhar commented that if it was a cement bag or a shipment of liquefied natural gas (LNG), “the entire load is reduced to the common man,” and adds: “Businesses will flourish, if we facilitate things for people.”
Judge Jamal Khan Commandkhail echoed the concern, warning: “Do not discourage taxpayers; when they do, people end up leaving the country.”
The bank pressed the FBR on why Parliament had created distinctions among taxpayers. Judge Commandkhail said that neither the decisions of the Government nor the law itself explained the justification of such differentiation.
FBB’s lawyer, Astma Hamid, argued that the Senndh Superior Court (SHC) and the Superior Court of Islamabad (IHC) had not sought any data on the matter, and clarified that the Super Tax was applied only to 15 sectors with revenues greater than RS3 billion.
She argued that no company had claimed an inability to pay. But Judge Mazhar stressed that “the real problem is why there is a distinction between taxpayers,” emphasizing that budgetary measures should not end by changing the load to the public.
