Taxes beyond sales tax can be imposed under NFC: Justice Mandokhail

ISLAMABAD: The Supreme Court adjourned the hearing of a case challenging Section 4B of the Income Tax Ordinance 2001, concerning the imposition of super tax, on October 14.

A five-member constitutional bench, led by Justice Amin-ud-Din Khan and including Justices Jamal Khan Mandokhail, Muhammad Ali Mazhar, Syed Hasan Azhar Rizvi, and Shahid Bilal Hassan, heard the case.

Barrister Farogh Naseem, representing a taxpaying company, continued his arguments. Justice Jamal Mandokhail noted that under the National Finance Commission, taxes beyond sales tax can be imposed. Justice Muhammad Ali Mazhar questioned whether a tax could be imposed after the deadline, to which the counsel replied in the negative.

Justice Mazhar further asked why the issue remained unresolved and repeatedly arose. The counsel explained that the Sindh High Court had, in one case, declared the tax imposed on July 1, 2023 null and void, and in another, ordered a 4pc tax instead of 10pc. The court adjourned the hearing until further notice.