ISLAMABAD: The Supreme Court of Pakistan on Wednesday heard arguments in a key case challenging the levy of super tax under Section 4B of the Income Tax Ordinance, 2001.
A five-member constitutional bench headed by Justice Amin-ud-Din Khan, along with Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Syed Hassan Azhar Rizvi, and Justice Shahid Bilal Hassan, took up the matter.
Appearing on behalf of various taxpayer companies, Barrister Farogh Naseem argued that the principle of law does not allow double taxation on the same income. He said that while tax laws permit income to be subjected to a surcharge or super tax once assessed, there is no provision making it an additional tax on top of regular income tax.
Justice Jamal Khan Mandokhail questioned how super tax could be charged on income that has already been taxed. The counsel maintained that taxpayers should be able to choose between overlapping provisions—either under Section 4 or Section 4C of the ordinance—similar to the way overlapping laws are interpreted in criminal matters, where the less severe provision is usually applied.
The bench adjourned the hearing until Thursday, with Barrister Naseem set to continue his arguments.
