Supreme Court questions fairness of super tax

The Supreme Court on Wednesday raised sharp questions over the government's imposition of the super tax, with judges warning that the burden of such levies ultimately fell on ordinary citizens and discouraged the taxpayers.

A five-member Constitutional Bench, headed by Justice Aminuddin Khan, resumed hearing in the case challenging the super tax. During the hearing, Advocate Asma Hamid appeared on behalf of the Federal Board of Revenue (FBR).

Sitting on the bench, Justice Muhammad Ali Mazhar remarked that whether it was a cement bag or a liquefied natural gas (LNG) shipment, "the entire burden comes down on the common man," adding: "Business will flourish, if we make things easier for people."

Justice Jamal Khan Mandokhail echoed the concern, cautioning: "Do not discourage taxpayers - when you do, people end up leaving the country."

The bench pressed the FBR on why parliament had created distinctions among taxpayers. Justice Mandokhail said neither the government's decisions nor the law itself explained the rationale for such differentiation.

FBR counsel Asma Hamid argued that the Sindh High Court (SHC) and the Islamabad High Court (IHC) had not sought any data on the matter, and clarified that the super tax was applied only to 15 sectors with incomes exceeding Rs300 million.

She contended that no company had claimed an inability to pay. But Justice Mazhar underlined that the "real issue is why there is a distinction among taxpayers," stressing that budget measures should not end up shifting the burden back onto the public.