SC seeks record of super tax cases in high courts

ISLAMABAD: The Supreme Court on Tuesday sought, till May 19, the complete record of cases pending in all five high courts regarding Super Tax.

A five-member Constitutional Bench, headed by Justice Aminuddin Khan, heard the case regarding the Super Tax. The counsel for the Federal Board of Revenue (FBR), Raza Rabbani, presented various judicial decisions as precedents on the matter.

Justice Jamal Khan Mandokhail expressed dissatisfaction with the government’s stance and remarked that until the NFC formula is changed, the federal government cannot use additional funds. Justice Mandokhail asked Raza Rabbani about the Senate’s opinion regarding the implementation of the Super Tax. Raza Rabbani replied that the Senate has no objection to its implementation.

After Rabbani completed his arguments, Justice Jamal Mandokhail called Additional Attorney General Amer Rehman to the rostrum and asked him to provide details on how much money was collected through the Super Tax and how much was spent. Amir Rehman informed the court that Rs114 billion were collected in the name of Super Tax, and the federal government spent Rs113 billion, which is more than its allocated share. Justice Jamal Mandokhail remarked that the federal government can only spend its allocated share and no more. “Why should money collected from across the country be spent only in a specific region,” Justice Mandokhail questioned. He further questioned that, until the NFC formula is changed, how can the federal government use additional funds

Justice Mandokhail expressed dissatisfaction with the statement of the Additional Attorney General, saying that the federal government cannot make additional expenditures without parliamentary approval.

Asma Hamid, another counsel for FBR, argued that the framers of the Constitution had clarified this tax in the Constitution. Justice Jamal Mandokhail inquired how the Super Tax is imposed and whether it applies to ordinary citizens. The learned counsel replied that it is a general tax collected from local authorities. Later, the court directed the five High Courts to submit the records of the cases related to the Super Tax pending there and adjourned the hearing until May 19.