Islamabad:
The Supreme Court questioned on Monday the justification of the government behind the unexpected income tax, investigating whether ordinary price increases could be treated as extraordinary profits.
A Constitutional Bank of five members, headed by Judge Aminuddin Khan, heard arguments of the lawyer of the Peticionarios Ahmed Jamal Sukhera.
Judge Hassan Azhar Rizvi asked: “If gasoline increases from RS150 to RS200, would it be an unexpected gain? If sugar goes from RS160 to RS170, would that still tell?”
Sukhera argued that the tax unfairly attacked some sectors. “If three or four people benefit while most incur losses, how can taxes be imposed?” He said, pointing out contradictions in government policy and that the measure was driven only by the “unexpected profit policy.”
Judge Muhammad Ali Mazhar reminded him that constitutional safeguards have limits: “Article 10 -it is a fair trial: what does that have to do with taxes?”
Sukhera insisted in taxes should involve public participation, arguing that the tax violated entry 47 of the Constitution, which governs the fiscal powers of Parliament.
Judge Mazhar replied that, although some municipal taxes include such provisions, “the Income Tax Law does not have a clause on the public hearing.”
During the procedures, Sukhera commented: “Simplicity can also be a captivating charm”, which leads to Judge Mazhar to joke, “perhaps this is its kind of simplicity?” – Drawing laughs.
Reference to his age, Sukhera said: “I am old now; my children are lawyers and sitting here.”
Judge Jamal Khan Commandkhail asked for his age, and hearing “57”, commented: “Do you consider 57 old?” – causing more laughs.
Sukhera concluded: “One day, none of us will be here, but this judicial decision will remain.”
The Bank said that autonomous government institutions, including PIA and steel, were still included in a loss were included in the Super Tax List.
Judge Commandkhail observed that supervising these institutions is the responsibility of the Government, not of Parliament. The audience was postponed until Tuesday.
Super taxes
Super taxes is an additional tax on high -income individuals, companies and industries, largely addressed to large corporations. In the Federal Budget 2022–23, the Government imposed up to 10% of Super Tax on the main sectors, including cement, steel, sugar, oil and gas, fertilizers, banks and textiles, citing the need to increase additional income for economic stabilization.
The requests that challenge the tax have been submitted to the Superior Court by individuals and organizations.
