A constitutional bench of the Supreme Court held a hearing on the imposition of the Super Tax, initially introduced in 2015 as a one-time levy to raise Rs 80 billion for the rehabilitation of areas affected by Operation Zarb-e-Azb. However, the tax continued until 2022, despite the operation having concluded, 24NewsHD TV Channel reported.
During Tuesday’s hearing, Makhdoom Ali Khan, representing private companies, argued that the government introduced the Super Levy Tax through the 2015 Finance Bill, justifying it as a one-time imposition for the rehabilitation of war-affected areas. However, the tax remained in effect for seven years (2015 to 2022). He further stated that it remains unclear how much the government collected under this levy.
Justice Jamal Mandokhail inquired about the government’s rehabilitation plan for the affected regions, asking whether a PC-1 (project plan) was prepared or any estimates were made for reconstruction. He also questioned whether a service tax could be imposed through a mini [budget] bill.
Makhdoom Ali Khan responded that since the government had already levied income tax, the term "Super Tax" was used to avoid double taxation. He emphasised that social welfare matters now fall under provincial jurisdiction, making this Super Tax no longer a legitimate federal levy.
Justice Muhammad Ali Mazhar questioned whether the Super Levy Tax was meant to last only for one year. Makhdoom Ali Khan confirmed that it was indeed imposed for a single year in 2015.
Justice Jamal Mandokhail further asked whether any official accounting records exist regarding the total amount collected through the Super Tax. Makhdoom Ali Khan stated that no finance minister’s speech ever disclosed the total revenue generated or how the funds were spent. He suggested that the government should be asked for these financial details. In response, Justice Jamal Mandokhail remarked that this debate could turn into a never-ending story.
Justice Muhammad Ali Mazhar noted that Super Tax was imposed for a specific purpose and questioned whether it was meant to last forever after being introduced once. Meanwhile, Justice Aminuddin pointed out that a key objection to the tax is whether funds from the National Consolidated Fund can be spent without the consent of the provinces.
At this point, FBR’s lawyer, Raza Rabbani, argued that the fight against terrorism is an ongoing process. Justice Jamal Mandokhail reminded that the Super Tax was introduced specifically for the rehabilitation of Operation Zarb-e-Azb victims. In response, Raza Rabbani explained that terrorism-affected people were displaced as a result of military operations.
Makhdoom Ali Khan insisted that the government must provide a detailed breakdown of the funds collected and their utilisation. At this point, the additional attorney general informed the court that the Registrar’s Office has requested some details, which will be presented by tomorrow.
The Super Tax case hearing was adjourned until tomorrow, with Makhdoom Ali Khan set to continue his arguments.
Reporter: Amanat Gishkori