SC questions govt spending of super tax without NFC formula adjustment

ISLAMABAD: A five-member Constitutional Bench of the Supreme Court, headed by Justice Aminuddin Khan, heard the case on super tax.

The Federal Board of Revenue’s (FBR) lawyer Raza Rabbani presented various court references. The court questioned on the Senate’s opinion regarding super tax, to which Rabbani replied that the Senate has no objection to super tax.

Lawyer Raza Rabbani has completed his arguments in today’s hearing. The court then called Additional Attorney General (AAG) Aamir Rehman to the rostrum.

Justice Jamal Mandokhail asked the AAG to tell the facts about how much was collected and how much was spent from super tax. He replied that Rs114 billion were collected, and the federation has spent Rs117 billion. “[The government] has spent more than the federation’s share,” he added.

“The federation can only spend its share, not more than that,” Justice Mandokhail said, inquiring, “Why should money be collected from the entire country and spent in a specific area?”

The court asked, “How can the federation use additional funds until the NFC formula is changed?”

Justice Mandokhail also said that he was not satisfied with the AAG’s statement. “The federal government cannot make additional expenses without the approval of the parliament,” he added.

“Development funds are also spent under some scheme. What was the plan, I don’t know, money came and went,” Justice Mandokhail said.

Afterwards, the Supreme Court adjourned hearing of super tax case till May 19.

Also read: Constitutional bench resumes super tax case appeal hearing