ISLAMABAD: (WEB DESK) The Federal Constitutional Court of Pakistan on Tuesday dismissed the illegitimacy of all the objections by the opponents of the super tax by confirming that the levy was constitutional, applicable under Section 4B of the Income Tax Ordinance.
The verdict was made by a bench headed by Chief Justice Aminuddin in open court based on the ruling that the objections were not noteworthy. The ruling affirms that the current super tax regime, which has been in operation since 2015, is still in existence.
The petitioners, among them being businesses, had complained that such tax was excessive and that it was discriminatory against business since the tax was applied on overall income and not on the actual profit. Lawyers argued that those firms that depended on bank funding were placed under an unsustainable burden in that the companies would have to pay the super tax on gross income despite the net profits being much less.
In various hearings that happened over the last few months, the court listened to arguments keenly but seemed not convinced by the fact that the tax created disincentives to investment.
The decision of Tuesday supports the government in its pursuit of the perpetuation of the super tax regime. The opinionated people indicate that the decision supports the power of the state to raise taxes that are considered essential to raise revenues without violating the legal uniformity of the Income Tax Ordinance.
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