ISLAMABAD:
The Supreme Court on Monday resumed hearings in the super tax case, where members of the broader constitutional court made key observations on the imposition and timing of the tax.
A five-member bench, headed by Justice Aminuddin Khan, heard the case.
During the proceedings, Justice Jamal Khan Mandokhail noted that the National Finance Commission (NFC) can also impose taxes other than sales tax.
Justice Muhammad Ali Mazhar observed that “a tax cannot be imposed after the prescribed period has elapsed.” Advocate Farogh Naseem, appearing for several corporate petitioners, argued that the Sindh High Court had already declared the July 1, 2023 super tax null and void, ruling that a tax rate of 4% be applied instead of 10%.
He argued that the federal government could not legally impose a tax beyond the constitutionally defined period.
Another lawyer, Hafiz Ehsan Khokhar, said the lawyers were presenting their arguments with “patience and dignity” and hoped for a fair hearing.
The case, which concerns the legality and constitutional limits of the government’s power to impose a supertax, will continue today (Tuesday) as the court resumes deliberations.
On April 4, 2024, a division bench of the Islamabad High Court, comprising then Chief Justice Aamer Farooq and Justice Tariq Mehmood Jahangiri, while hearing appeals within the court, directed one of the respondents to continue paying tax liability under Section 4C as amended by the Finance Act, 2023.
The “super tax”, first introduced by the PML-N government in 2015, is aimed at high-income earners, associations of people and companies earning more than Rs 500 crore a year.
It imposes a 4 percent tax on the income of banking companies and 3 percent on other sectors, with the revenue going to finance the rehabilitation of temporarily displaced people.
