Islamabad:

A member of a constitutional bench (CB) from the Supreme Court on Tuesday asked whether the federal government distributes revenue from the super tax between the provinces and whether such a distribution is allowed under the law.

The five-member bench, led by Justice Aminuddin Khan, resumed to hear a number of petitions that challenged the introduction of a super tax introduced in 2016 to rehabilitation of internal displaced persons (IDPs) during Operation Zarb-Ezb. The operation, launched by the PML-N LED government in 2014, aimed to eliminate terrorist castle in North Waziristan.

During the hearing, senior lawyer Makhdoom Ali Khan – representing companies that contested the tax – began his arguments by distinguishing between income tax and super tax. He said that income tax applies regardless of income level and that all tax revenue enters the national treasury without a designated purpose.

“According to section 113 of the Income Tax Regulation, even minimal income is subject to taxation,” he said.

Justice Jamal Khan Mandokhail questioned whether the federal government distributes super tax revenue among the provinces, Khan replied that, according to a speech from the then Finance Minister, the super tax was calculated solely for the rehabilitation of IDPs.

“The super tax was first introduced in 2016, extended for one year in 2017 and later made indefinitely in 2019 using the word ‘in the future’,” he added.

Khan claimed that the tax was never intended to be distributed among provinces and claimed that a single rupie has not yet been spent on IDP rehabilitation.

Justice Jamal Khan Mandokhail again asked the additional legal lawyer if an amount – whether RS8 or RS8 trillion – can be distributed in such a way.

Earlier, Justice Aminuddin Khan noted that in the absence of a key lawyer he had asked other advice to continue with arguments. However, the lawyers replied that when Makhdoom Ali Khan is a senior lawyer, they would wait for him to conclude before presenting their own arguments.

Justice Khan requested Makhdoom Ali Khan to try to end his arguments soon. Attorney Makhdoom Ali Khan said he is following his friend Khawaja Haris lead and will try to end his arguments as soon as possible.

Smiling, justice Jamal Khan Mandokhail noticed to Makhdoom Ali Khan that he should not follow his friend, Khawaja Haris, in this case. The Supreme Court resumes the hearing today.