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Supreme Court Questions Indefinite Continuation of Super Tax
Justice Muhammad Ali Mazhar questions if the super tax, imposed once for a specific purpose, will continue indefinitely. Supreme Court seeks clarity on collected funds and their usage.
ND
by News Desk
2025-03-11
Supreme Court Questions Indefinite Continuation of Super Tax

The Supreme Court of Pakistan has raised concerns over the continued imposition of the super tax, originally introduced for Operation Zarb-e-Azb rehabilitation in 2015. Justice Muhammad Ali Mazhar questioned whether the super tax, imposed once for a specific purpose, would continue indefinitely.

A five-member constitutional bench, headed by Justice Aminuddin, conducted the hearing, with Makhdoom Ali Khan, the lawyer representing various companies, presenting his arguments.

Super Tax: A Temporary Measure or a Permanent Levy?

Makhdoom Ali Khan informed the court that the super levy tax was introduced in 2015 via the Money Bill, initially intended to generate funds for rehabilitating areas affected by Operation Zarb-e-Azb.

“The super tax was introduced in 2015 with an initial estimate of collecting Rs 80 billion, but there is no record of how much was actually collected,” he argued, adding that the government should provide clarity on the total tax revenue collected under this levy.

Justice Jamal Mandokhel inquired whether any official calculation had been made regarding the collected funds and their expenditure. The lawyer responded that no such details were provided in any Finance Minister’s speech.

“The super tax was meant for rehabilitation. We need to know how many people were displaced and what specific measures were taken for their resettlement.”

Judges Challenge Justification for Super Tax Continuation

Justice Muhammad Ali Mazhar remarked:

“Super tax was imposed once for a specific purpose. Will it continue till the end of time?”

Justice Aminuddin raised constitutional concerns, questioning whether the federal government could spend revenue from the national general fund without provincial consent.

Makhdoom Ali Khan argued that income tax had already been collected on earnings, and the super tax was merely a renamed levy to avoid double taxation.

FBR’s Defense: War on Terror is Ongoing

On behalf of the Federal Board of Revenue (FBR), senior lawyer Raza Rabbani defended the continuation of the super tax, stating:

“The war against terrorism is an ongoing process, and the victims remain displaced.”

To this, Makhdoom Ali Khan countered, questioning why the government stopped collecting the tax in 2020 if terrorism was still a concern.

Next Hearing Scheduled

The Supreme Court adjourned the hearing until tomorrow, with further deliberations expected on whether the super tax should continue and how past funds were utilized.

 

Key Takeaways:

✅ Super tax introduced in 2015 for Zarb-e-Azb rehabilitation.
✅ No clear records on total collection or expenditure.
✅ Judges question if super tax will continue indefinitely.
✅ FBR argues that counterterrorism efforts are ongoing.
✅ Case adjourned till tomorrow for further arguments.

 
Tagged:

PakistanEconomy

SupremeCourt

Taxation

SuperTax
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