LHC dismisses petitions challenging imposition of super tax

LAHORE: The Lahore High Court on Tuesday dismissed 29 petitions challenging imposition of super tax for rehabilitation of temporary displaced persons.

Justice Shahid Karim announced the verdict on petitions filed by DG Khan Cement Company and others. The court had reserved the verdict after hearing arguments of the parties and it was announced in open court.

The petitioners had submitted that the super tax was imposed on individuals and companies on income of Rs 500 million under Section 4B of the Income Tax Ordinance 2001. It was inserted by the Finance Act 2015 initially and later, it was extended in Finance Bill 2017, they added.

They contended that super tax was not a tax and it could not be levied through a money bill by the parliament. They further submitted that the levy was in nature of double taxation. The petitioners pleaded the court to declare that Section 4B of Income Tax Ordinance as unlawful.

However, the Federal Board of Revenue and other respondents opposed the contentions submitting that the super tax fall under the definition of tax and the parliament was empowered to impose it as per the constitution.

In its detailed order, the court agreed with the arguments of respondents and held that provisions of Section 4b of the Income Tax Ordinance, 2001 were in accordance with the constitution and valid while dismissing petitions.