$40 million outflow be checked: SC

ISLAMABAD: Heading a three-member bench, Chief Justice of Pakistan (CJP) Justice Umer Ata Bandial Friday observed that Pakistan would not default but the government should take effective measures to curb the flow of 40 million dollars per month to foreign countries.

This observation from the country’s top judge came during the hearing of the FBR’s appeals against the interim order passed by Lahore High Court (LHC) regarding the super tax.

Last year, the government had imposed super tax on the companies earning over Rs150 million.

These companies included the cement, steel, sugar, oil and gas, fertilizer, textile, automobile, tobacco industries etc.

Faisal Siddiqui, counsel for the Federal Board of Revenue, submitted that if Pakistan defaulted, he would represent the federation.

The chief justice, however, observed that Pakistan would not default provided everyone sincerely strove for the country’s betterment.

“The government should take effective measures for curbing the flow of 40 million dollars per month to foreign countries,” he remarked.

The court directed that all the connected petitions, challenging the super tax be clubbed and fixed for hearing next week.

Faisal Siddiqui submitted that the final decision of the Lahore High Court (LHC) was announced.

He further submitted that the LHC had suspended the implementation of the order till the final decision on the case adding that the Supreme Court had often asked the companies to submit 50% of the payment in tax cases.

Former law minister and counsel for the companies Barrister Farogh Naseem argued that after the announcement of the final decision of the high court in the case, the appeals filed by the FBR had become infructuous.

He contended that the court could not order the imposition of 50% super tax after the petitions became infructuous. The chief justice said the matter will be fixed next week adding that the FBR came to the court on the super tax matter with a good intention.

The chief justice further observed that the court knew that the Shell Company had already paid millions in taxes.

Later, the court adjourned the matter until February 16.