Constitutional Bench resumes super tax case hearing

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

Speaking to the counsel Makhdoom Ali Khan, Justice Aminuddin said that “other lawyers were asked to complete their arguments but they refused to do so until you have completed your arguments. Try to finish the arguments quickly.”

“I follow my friend Khawaja Haris, I will try to finish as soon as possible,” Makhdoom Ali Khan responded before starting his arguments. He said that the income tax is levied on income, there is no specific purpose in it. All the tax money goes to the national treasury.”

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Justice Jamal Khan Mandokhail asked, “Does the federal government distribute the super tax money to the provinces?” To this the counsel replied that according to the Finance Minister’s speech, the super tax money is to be used for the rehabilitation of homeless people.

“Super tax was introduced in 2016, extended for one year in 2017,” Makhdoom Ali Khan said, adding that the word ‘extension’ was changed to ‘onwards’ in 2019. “The purpose for which the tax was collected in 2016 was not to be distributed among the provinces,” he said.

The lawyer further said that all the principles related to tax are present in the 1973 Constitution. He said, “The purpose for which the tax was collected in 2016 was not to be distributed among the provinces.”

Justice Mandokhail inquired that irrespective of the amount being eight rupees or eight trillion rupees, “can it be distributed like this?”

Lawyer Hafiz Ahsaan responded, “The issue here is not about the distribution of money. The court has not issued any orders regarding the distribution of money.”

Counsel Makhdoom Ali Khan said that till now not a single rupee has been spent on the rehabilitation of homeless people. “There is a difference between income tax and super tax. Income tax has to be paid whether the income is less or more,” he said, adding, “According to section 113 of the Income Tax Ordinance, tax is applicable even on minimum income.”

Justice Aminuddin Khan asked Makhdoom Ali Khan about the time needed for arguments, to which the counsel said that he will try to finish his arguments by the day after tomorrow. Afterwards, the court adjourned the hearing of the case until tomorrow.