Islamabad:
A constitutional bench of five members (CB) led by judge Aminuddin Khan resumed a case relating to the taxation of super taxes on Monday.
The lawyer for the Federal Board of Return (FBR), Asma Hamid, began with opening arguments. She informed the court that no taxpayer had challenged the verdict of the High Court of Lahore (LHC), confirming the legality of the super tax imposed under article 4C of the income tax order, 2001, while reducing its rate for several industries.
She added that the High Court of Islamabad (IHC) had already made decisions on the two sections of the case, noting that 89 petitioners had filed requests in the IHC in 2022.
A bench of three LHC judges led by judge Jawwad Hassan had rejected petitions contesting the constitutionality of the levy and judged that the government had the power to impose such a tax under the finance law 2022. However, the court reduced the tax rate by 10% to 4% for 16 sectors, including the bank, offering partial relief to the petitioners.
During the hearing, judge Muhammad Ali Mazhar asked what was the common factor in all judicial decisions and asked for a brief summary of all decisions before the court.
The bench adjourned the hearing until 9:30 am today (Tuesday).
Super taxes
The Super Tax is an additional direct debit on individuals, companies and high industries, intended for large companies. In the federal budget of 2022-2023, the government has imposed up to 10% super taxes on the main sectors, including cement, steel, sugar, oil and gas, fertilizers, banks, textiles and others, citing the need to increase additional income for economic stabilization.
