Supreme Court Debates Cigarette Taxes, Prices, and Profits During Super Tax Hearing

ISLAMABAD: The Supreme Court of Pakistan on Friday held an extensive discussion on cigarette taxation, pricing, and profit margins during the ongoing hearing of the **Super Tax case**.

A **five-member constitutional bench**, headed by **Justice Aminuddin Khan**, heard petitions related to the Super Tax. The petitioners’ counsel, **Ijaz Ahmad Zahid**, concluded his arguments, after which the hearing was adjourned until **Monday**.

During the proceedings, the counsel informed the court that **10 tobacco companies** are registered with the **Federal Board of Revenue (FBR)**. He stated that the FBR’s lawyers had presented a new table, changing their earlier stance, according to which a **Rs173 cigarette pack carries Rs44 in taxes**. He further added that a **Rs77 pack includes Rs44 in taxes and Rs33 in profit**, claiming that under the current legal regime, windfall profits are not possible.

Justice **Muhammad Ali Mazhar** remarked that the bench would not delve into the case’s factual details and asked the lawyer to focus on legal issues. The counsel replied that any increase in prices would also raise the tax burden.

Justice **Jamal Khan Mandokhail** observed, *“You are not paying the entire tax yourself — those who smoke are also contributing.”* He added that taxes come out of profit margins, not separate funds.

Justice **Hassan Azhar Rizvi** humorously noted, *“Your company deserves credit — earning Rs300 million with such slim margins is impressive.”*

The counsel mentioned that Pakistan faced pressure from the **IMF** regarding budget implementation, citing a statement by former finance minister **Shaukat Tarin**.

Justice Mandokhail further inquired about cigarette exports to Afghanistan, to which the counsel responded that if other brands are smuggled or exported illegally, his company should not be held responsible.

Before adjourning the session, the bench discussed constitutional aspects related to the **26th Amendment**, with Justice Mandokhail emphasizing that the constitutional bench is obliged to examine all such matters.

The court will **resume the hearing on Monday**.