Super tax amount clearly defined, companies must pay: SC

Justices discuss no discrimination in tax, clarify super tax is separate from final tax regime

Supreme Court Judge Justice Muhammad Ali Mazhar remarked that the super tax law clearly defines the taxable profit threshold, stating, "Companies must pay only what is legally due."

A five-member bench heard petitions challenging the super tax on Thursday. The bench, headed by Justice Aminuddin Khan, included Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Ayesha Malik, and Justice Hasan Azhar Rizvi.

At the outset of the session, Advocate Farogh Naseem concluded his arguments, representing several companies challenging the super tax.

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During the proceedings, Justice Mazhar observed that the argument presented by the petitioners appeared to suggest imposing tax even on companies not liable to pay.

Justice Mandokhail intervened, noting, "You mean there should be no discrimination." Justice Mazhar clarified that once a tax is imposed under the final tax regime, it cannot be levied again, although the super tax operates as a separate tax category.

Advocate Aziz Nishtar, representing Pakistan Tobacco Company, argued that Article 18 of the Constitution grants businesses the right to operate freely and that the government has failed to create a conducive business environment.

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He claimed, "We are being taxed even without making profits," adding that the government often imposes the super tax when in urgent need of revenue. Justice Mazhar questioned whether expanding the tax net could improve the business climate.

Advocate Ejaz Ahmed argued that the Finance Bill had been passed without meeting the requirements of Article 73, and the government had imposed the super tax immediately without any policy statement.

The hearing was adjourned until Friday, when the court will continue deliberating on the super tax issue.