Constitutional bench resumes super tax case appeal hearing

ISLAMABAD: The five-member Constitutional Bench of the Supreme Court resumed the hearing of super tax case. Justice Aminuddin Khan is presiding over the bench.

Counsel of the Federal Board of Revenue (FBR) Raza Rabbani informed the court on various points, starting with Sections 4B and 4D of Income Tax Ordinance 2001. “Supreme Court can review the principals of tax,” Rabbani said, adding, that the bench was currently hearing the appeal under Article 185.

Justice Jamal Khan Mandokhail asked, “Please tell me whether this tax was levied under Article 173 or not.” The counsel responded that the entire procedure of taxation is clarified in Article 173. “The Standing Committee of Finance first decides the tax with reference to the budget. The Finance Committee sends it to the Upper House, from there the budget is then approved,” Rabbani said.

Justice Mandokhail said, “Makhdoom Sahib had laid more emphasis on 4B.” Rabbani answered, “In 4B it is clear that the super tax will be used to repair damaged houses,” adding that there is not a lot of clarity here.

“Super tax and income tax are different things. Super tax is levied for a specific purpose,” the counsel added.

“How is the money collected from super tax distributed?” Justice Mandokhail asked, adding, “Can you impose super tax without legislation?” The lawyer answered that legislation was made regarding super tax. “All the money from super tax goes to the federal overall budget,” he said.

Justice Mandokhail remarked, “How to use the federal overall budget is explained in Article 175. In budgeting, you know how much money the federal government has?” The counsel said, “The amount of super tax will first go to the federal overall budget.”

Rabbani added, “Regarding super tax, it is written in the preamble of 2016 that the money will first go to the endowment overall budget.”

After these comments, the bench postponed the hearing until tomorrow. FBR’s lawyer Raza Rabbani will continue his arguments tomorrow.

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