Supreme Court Delays Hearing on Super Tax Case, Vows to Address Legal Concerns

Islamabad:The Supreme Court’s five-member constitutional bench, headed by Justice Amin-ud-Din Khan, resumed the hearing of multiple petitions challenging the Super Tax.

During the proceedings, the counsel for private companies, Makhdoom Ali Khan, continued his arguments, emphasizing that the purpose of the Super Tax was clear – to be used for the restoration of areas affected by disasters. He pointed out that since 2015, there has been no clear reporting on how much tax was collected and where it was spent.

Makhdoom Ali Khan further argued that one bench is required to implement the orders of another bench, and in this case, even the Supreme Court’s decision has not been executed. Justice Jamal Khan Mandokhel raised a pertinent question, asking if such an act is passed by both houses of parliament, whether it automatically becomes a law.

The counsel responded that for passing such an act, a suitable policy framework needs to be established first. Justice Muhammad Ali Mazhar inquired if the counsel had reviewed judicial decisions from Karachi and Peshawar, to which Makhdoom Ali Khan replied that the arguments presented by lawyers in these cases were similar.

Justice Amin-ud-Din Khan referred to Section 2, Clause 6 of the Income Tax Ordinance and asked Makhdoom Ali Khan to review it. The counsel responded that the Income Tax Ordinance includes income tax and additional taxes, but Justice Muhammad Ali Mazhar emphasized the importance of considering the definition of tax, which should include references to the FBR (Federal Board of Revenue).

The counsel maintained that the Income Tax Ordinance is also explicitly mentioned in the Constitution, but Section 63 of the Ordinance does not support his argument. Justice Jamal Khan Mandokhel clarified that the primary question was whether the taxes were spent in accordance with their intended purpose.

The Supreme Court has adjourned the hearing of the Super Tax case until tomorrow, with Makhdoom Ali Khan set to continue his arguments.