Super Tax case: Banks pay 39pc tax, others 29pc, notes SC

ISLAMABAD: Justice Aminuddin Khan noted on Friday that banks are paying 39 per cent tax, while other corporate entities are paying 29 per cent tax, as the Supreme Court adjourned Super Tax case hearing until September 29.

A five-member constitutional bench of the Supreme Court headed by Justice Aminuddin Khan heard the case against Section 4B of the Income Tax Ordinance 2001, which pertains to the imposition of Super Tax.

A five-member constitutional bench of the Supreme Court headed by Justice Aminuddin Khan heard the case. Other members of the bench included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Syed Hasan Azhar Rizvi, and Justice Shahid Bilal Hassan.

During the hearing, Dr. Ikramul Haq, counsel for private banks, argued that Super Tax was imposed on banks in 2023. Justice Muhammad Ali Mazhar remarked this is the first case related to 2023; all previous petitions are from 2022.

The counsel for private banks argued that over 100 per cent tax has already been imposed, and the court should instruct parliament to review this amendment. He further submitted that once a tax is levied, it cannot be imposed again, but here double taxation is being done.

He submitted that once a certain amount is taxed, only the increased portion can be taxed again, not the entire amount. He added that sales tax was not imposed on petroleum products to avoid sharing revenue with the provinces. In Punjab, he said livestock tax has been included under agriculture tax, which is not permissible.

He further submitted that the government is taking the largest loans from banks, and at the same time, imposing taxes on them. Dr. Ikramul Haq submitted that the same position has been adopted in the Lahore and Islamabad High Courts, that the law cannot be changed.

Justice Muhammad Ali Mazhar remarked that everyone is paying tax on actual income. He said the law cannot be changed, but amendments can be made.

Justice Aminuddin remarked that the difference is that others are paying 29 per cent tax, while banks are paying 39 per cent. Dr. Ikramul Haq added that all sectors are overtaxed and are opposing the Super Tax.

Meanwhile, the court adjourned further hearing until September 29 at 11:30 am.