Islamabad:
The Supreme Court questioned on Monday the justification of the government behind the profits tax, asking if the ordinary price increases could be treated as extraordinary profits.
A constitutional bench of five members, led by Judge Amicin Khan, heard the arguments of the lawyer for the petitioners Ahmed Jamal Sukhera.
The judge Hassan Azhar Rizvi asked: “If the gasoline going from RS150 to Rs200, it would be a profit? If sugar goes from RS160 to Rs170, would that still count?”
Sukhera argued that the tax was unjustly targeting some sectors. “If three or four people benefit from it while the majority suffer losses, how to impose a tax?” He said, noting the contradictions in government policy and that the measure was motivated only by the “Faille profit policy”.
Judge Muhammad Ali Mazhar reminded him that constitutional guarantees have limits: “Article 10-A concerns the fair trial-what has it to do with taxation?”
Sukhera insisted that taxation should involve the public’s participation, arguing that the tax violated entry 47 of the Constitution, which governs the tax powers of Parliament.
Judge Mazhar replied that, although certain municipal taxes include such provisions, “the income tax law has no clause concerning the public hearing”.
During the procedure, Sukhera pointed out: “Simplicity can also be a captivating charm,” inciting the Mazhar judge to Inip: “Maybe it’s your kind of simplicity?” – Draw laughter.
By referring to her age, Sukhera said: “I’m old now; my children are lawyers and they are sitting here.”
Justice Jamal Khan Mandokhail asked for his age, and hearing “57”, pointed out: “Do you consider 57 years?” – Provide an additional laugh.
Sukhera concluded: “One day, none of us will be here, but this judicial decision will remain.”
The bench noted that autonomous government institutions, including PIA and steelworks, worked at a loss but were included in the list of tax supers.
Judge Mandokhail observed that the supervision of these institutions is the responsibility of the government, not that of the Parliament. The hearing was adjourned until 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 and textiles, citing the need to increase additional income for economic stabilization.
Petitions contesting the levy were filed before the Superior Court by individuals and organizations.
