Is Super Tax Discriminatory or Legal? Supreme Court Grills FBR Over Government Policy

Islamabad: The Supreme Court of Pakistan posed tough questions to the Federal Board of Revenue (FBR) during a hearing on the legality and fairness of the **super tax** imposed by the government.

A five-member constitutional bench headed by **Justice Amin-ud-Din Khan** conducted the hearing on the case related to the imposition of the super tax.

During the proceedings, **FBR’s counsel Asma Hamid** argued that the **Income Tax Ordinance** contains separate taxation regimes. She explained that **Section 113** pertains to minimum tax, while **Section 8** deals with the final tax regime.

Justice **Muhammad Ali Mazhar** inquired about the exact interpretation of **Section 12** and sought clarity on the fundamental mechanism for imposing taxes. Meanwhile, Justice **Hassan Azhar Rizvi** questioned whether the government had consulted any tax experts or chambers of commerce prior to implementing the super tax and whether any **written recommendations or meeting minutes** were prepared.

**Dr. Ishtiaq**, FBR member, addressed the court stating that input is regularly obtained from all chambers and forwarded to the **Ministry of Finance**. He clarified that there are three main categories of taxpayers: **Minimum**, **Final**, and **Normal**, and the applicable tax rate (2% or 4%) varies according to these categories.

Asma Hamid further acknowledged that if the **super tax is imposed exclusively on a particular class**, it could be considered **discriminatory** under the law.

Following the arguments, the court **adjourned the hearing until tomorrow** for further deliberation.