ISLAMABAD: The constitutional bench of the Supreme Court will take up petitions against Sections 4B and 4C of the Income Tax Ordinance (ITO), 2001, regarding Super Tax, tomorrow (Monday).
A five-member CB, headed by Justice Aminuddin Khan, and comprising Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Syed Hasan Azhar Rizvi, and Justice Shahid Bilal Hassan will also hear the impleadment application of Peshawar High Court (Mingora Bench) Bar Association regarding declaration of 25th Constitutional Amendment ultra vires the Constitution.
Over 400 petitions have been filed against Sections 4B and 4C, which were inserted in the Income Tax Ordinance, 2001.
Due to launch of joint military operation Zarb-e-Azb in the North Waziristan Agency of Federally Administered Tribal Areas (FATA) there was temporary migration, displacement of the locals from the area of operation; therefore the federal government through Finance Act 2015 imposed a one-time Super Tax on the affluent and the rich individuals, association of persons and companies earning income above Rs500 million at the rate of 4% of income for the Banking companies and 3% of income for all others for the rehabilitation of temporarily displaced persons (TDPs). The estimated total cost of rehabilitation of TDPs was Rs80 billion.
Ijaz Ahmed Awan, who was representing several taxpayers from the Punjab, contended that the funds were in fact for the welfare and social well-being of the TDPs, adding the subject of ‘Social Welfare’ was devolved to the provinces through 18th Amendment. The impugned levy under the garb of ‘Social Welfare’ is not the subject matter of the federal government.
According to Ijaz Awan, the imposition of super tax was/ is not only invalid, unwarranted but also illegal and unconstitutional besides miserably lacking the essential attributes of a tax. He prayed the Court to set aside the judgment of Lahore High Court dated 28-02-2020.
Ijaz further stated that normal procedure was required to be adopted to impose impugned levy as against the one adopted via Money Bill. The levy of impugned tax on an affluent class, in utter negation of constitutional and statutory requirements is not justifiable in any manner, on the ground that the proceeds, therefore are meant for a ‘Noble National Cause’.
He said that the levy has been imposed in a discriminatory manner without any adherence to the provisions of Article 25 of the constitution. Tax cannot be imposed, more than once, on the income of an assessee under the guise of Entry 47 of 4th Schedule of the constitution.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.