The Supreme Court’s constitutional bench hearing the super tax case faced a major disruption as it was dissolved mid-session on Monday.
During the hearing, Justice Aminuddin Khan, head of the five-member bench, stated that Justice Aamer Farooq had previously ruled on the matter at the Islamabad High Court (IHC) and could no longer hear the case.
Company lawyers requested an adjournment until after Eid-ul-Fitr, but the court rejected the plea, deciding instead to proceed with daily hearings.
Justice Muhammad Ali Mazhar remarked that the case should at least begin, noting that separate paper books should be prepared for Section 4B and 4C of the Income Tax Ordinance.
The court also granted time for the parties to engage legal representation and adjourned the case until tomorrow (Tuesday).
It is pertinent to mention that on July 21, 2023, the IHC had declared the imposition of billions of rupees in super tax illegal.
The verdict, delivered by Justice Sardar Ishaq Khan, also nullified all recovery notices and deemed Section 4C of the Income Tax Ordinance unlawful.
However, three weeks ago, the Lahore High Court (LHC) ruled in favour of the Super Tax but reduced the rate from 10% to 4% for 16 sectors, including banking.
Over 350 petitioners challenged the tax, with representatives from the federal government and the Federal Board of Revenue (FBR) opposing their stance.
Amid these legal battles, the federal government has once again announced the imposition of the Super Tax for the year 2023, reigniting controversy over the tax’s legitimacy.
