Islamabad:
A member of a constitutional bench (CB) of the Supreme Court asked on Tuesday whether the federal government distributes the revenues of the super tax among the provinces and whether such a distribution is authorized under the law.
The bench of five members, led by Judge Amicin Khan, heard a series of petitions contesting the taxation of a super tax introduced in 2016 for the rehabilitation of internal displaced persons (IDP) during operation Zarb-Ezb. The operation, launched by the government led by PML-N in 2014, aimed to eliminate terrorist bastions from northern Waziristan.
During the hearing, the main lawyer Makhdomo Ali Khan – representing companies that disputed the tax – began his arguments by distinguishing income tax and super tax. He said that income tax applies regardless of income level and that all tax revenues go to the national treasury without designated use.
“Under article 113 of the income tax order, even a minimum income is subject to tax,” he said.
Juma Jamal Khan Mandokhail asked whether the federal government distributes Super Tax revenues among the provinces, Khan replied that, according to a speech by the Minister of Finance of the time, the Super Tax was intended only for the rehabilitation of PDIs.
“The Super Tax was introduced for the first time in 2016, extended for a year in 2017, then made indefinite in 2019 thanks to the use of the word” from “, he added.
Khan argued that the tax was never intended to be distributed between the provinces and affirmed that no roupire has yet been spent for the rehabilitation of PDIs.
Justice Jamal Khan Mandokhail again asked the additional prosecutor if an amount – whether RS8 or RS8 Billion – can be distributed in this way.
Earlier, Judge Aminuddin Khan pointed out that in the absence of a key lawyer, he had asked other advice to make arguments. However, lawyers replied that, since Makhdomo Ali Khan is a principal defender, they would wait for him to conclude before presenting their own arguments.
Judge Khan asked Makhdomo Ali Khan to try to conclude his arguments soon. Lawyer Makhdomo Ali Khan said he was following the example of his friend Khawaja Haris and will try to conclude his arguments as quickly as possible.
Smiling, judge Jamal Khan Mandokhail pointed out to Makhdomo Ali Khan that he should not follow his friend, Khawaja Haris, in this case. The Supreme Court will resume the hearing today.
