Super Tax; SC To Continue Hearing Tomorrow

Fahad Shabbir (@FahadShabbir) Published May 06, 2025 | 03:40 PM

ISLAMABAD, (UrduPoint / Pakistan Point News - 6th May, 2025) The five-member Constitutional Bench of the Supreme Court, headed by Justice Amin-ud-Din Khan, conducted hearing on Tuesday regarding the Super Tax case.

During the proceedings, Federal board of Revenue (FBR) counsel Raza Rabbani appeared before the court. Justice Muhammad Ali Mazhar questioned the distribution of the super tax revenue, asking, “If 42.5% of the Rs. 80 billion goes to the federal government, where will the rest go?”

Raza Rabbani responded that the federal government receives its share under the National Finance Commission (NFC) Award. Justice Mazhar remarked that funds collected for a specific purpose should be spent exclusively for that purpose.

Justice Jamal Khan Mandokhail inquired about the mechanism for distributing the Rs. 80 billion collected through Super Tax. Raza Rabbani explained that the funds would be spent through the federal government. Justice Mandokhail further asked who the intended beneficiaries of these funds are, to which Rabbani replied that they are meant for the victims of terrorism in Khyber Pakhtunkhwa and the former Federally Administered Tribal Areas (FATA).

He added that the war against terrorism is a national issue.

Justice Mandokhail observed that since the tax is collected from across the country, all provinces should have a share in the funds. In response, Raza Rabbani said he regretted if he had failed to clearly convey his point and clarified that all collected funds are deposited into the Federal Consolidated Fund, from which the provinces receive their share through the NFC Award.

Representing the companies, senior lawyer Makhdoom Ali Khan requested that the Auditor General and Secretary Finance be summoned. Justice Amin-ud-Din Khan remarked that the court would first await the Attorney General’s response before deciding whether such a summons was necessary.

The hearing was adjourned until Tuesday, with FBR counsel Raza Rabbani scheduled to continue his arguments.