The Supreme Court’s constitutional bench on Tuesday grilled the Federal Board of Revenue (FBR) over the collection and distribution of Rs 80 billion in super tax revenue, as the board’s lawyer Raza Rabbani admitted his failure to clearly explain the allocation mechanism to the court, reported 24NewsHD TV channel.
“I apologise for not being able to properly clarify the matter before the court,” Rabbani said during the hearing, led by a five-member bench headed by Justice Aminuddin Khan.
Justice Muhammad Ali Mazhar questioned the use of funds, stating, “Money should only be spent for the purpose it is collected,” and asked, “If 42.5% of the Rs 80 billion goes to the federation, where will the rest go?”
Raza Rabbani responded that the federal share would be allocated under the NFC (National Finance Commission) Award.
Justice Jamal Khan Mandokhail further pressed, “Who are the affected people the funds are intended for? If the budget speech clearly outlines the purpose, then why is the money being spent across the entire country?”
In defence, Raza Rabbani said, “The money will be spent through the federal government. The fight against terrorism is a national issue, and these funds are for victims from KP and FATA.”
Justice Mandokhail challenged this explanation: “If I collect money in your name and don’t spend it properly, would that be fair? The 18th Amendment is already in place — you will wreck the NFC Award with this approach. These are funds collected from the entire country, and every province has a right to them.”
Raza Rabbani again apologised: “I regret that I failed to clarify this properly. All funds are pooled into the Federal Consolidated Fund under the NFC Award, and provinces receive their share accordingly.”
Later in the hearing, Makhdoom Ali Khan, representing private companies, requested the court to summon the auditor general and secretary of finance. Justice Aminuddin Khan said the court would consider that after receiving a reply from the Attorney General.
The case hearing was adjourned until tomorrow, with Raza Rabbani set to continue his arguments.
Reporter: Amanat Gishkori