Judges discuss no discrimination in tax, clarify that super tax is separate from the final tax system
Supreme Court of Pakistan. PHOTO: APP/FILE
Supreme Court Justice Muhammad Ali Mazhar noted that the Super Tax Act clearly defines the taxable profit threshold, saying: “Companies must pay only what is legally due.”
A five-member bench heard petitions challenging the super tax on Thursday. The bench, headed by Justice Aminuddin Khan, included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Ayesha Malik and Justice Hasan Azhar Rizvi.
At the beginning of the session, lawyer Farogh Naseem concluded his arguments, representing several companies challenging the super tax.
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During the proceedings, Justice Mazhar observed that the argument put forward by the petitioners seemed to suggest that tax should be imposed even on companies that were not liable to pay.
Justice Mandokhail intervened and observed: “You believe there should be no discrimination.” Justice Mazhar clarified that once a tax is levied under the final tax regime, it cannot be levied again even though the super tax operates as a separate tax category.
Lawyer Aziz Nishtar, representing the Pakistan Tobacco Company, argued that Article 18 of the constitution gives companies the right to operate freely and that the government has failed to create a conducive business environment.
Read more: ‘Supertax cannot be imposed after the deadline’
He claimed, “We are taxed even without making money,” adding that the government often imposes the super tax when there is an urgent need for revenue. Judge Mazhar questioned whether expanding the tax net could improve the business climate.
Advocate Ejaz Ahmed argued that the Finance Bill had been passed without fulfilling the requirements of Article 73 and the government had imposed the super tax immediately without any policy declaration.
The hearing was adjourned until Friday, when the court will continue to consider the super tax issue.
