By Adnan Rafique
ISLAMABAD: The Supreme Court of Pakistan on Monday adjourned hearing till September 16 in a case related to imposition of super tax by the FBR.
A five member bench of the top court headed by Justice Amin Ud Din Khan heard the case.
During the course of proceeding, the FBR’s Lawyer Asma Hamid took the position that the legislature has given some exemption from super tax to provident fund holders. Justice Muhammad Ali Mazhar said that Section 53 is related to tax exemption.
The fund is not someone’s personal property, he said, adding that the trust requests the authorities and then the tax is paid to the concerned.
Justice Amin said that the responsibility of paying super tax is given in the schedule. Justice Hassan Azhar Rizvi remarked that when income tax cannot be imposed, how can super tax be imposed? Take an example, Rs100 tax is on fund and after 25 years, this Rs 100 will increase to Rs 550, meaning that the benefits received after retirement will not be available, he said.
The Additional Attorney General said that in the Second Schedule, every tax, including super tax, is exempted from the provident fund.
Asma Hamid took the position that the legislature is a very important sector for the government. Taxpayers are reading a part of the Islamabad High Court decision and Section 4C together. By reading the show cause notice and both together, they are saying that they are not obliged to pay super tax.
Asma Hamid argued that the tax department assesses the need for additional tax annually, and while tax rates may decrease after a certain cap, they are not completely eliminated.
Justice Hassan Azhar Rizvi remarked that nowadays every taxpayer is getting notices to pay advance tax.
Justice Muhammad Ali Mazhar said how can super tax be in advance, how will the calculation be done for advance tax.
Asma Hamid said that the profit of the financial year is available, from which the calculation can be done.
FBR lawyer Hafiz Ehsan started the arguments and took the position that I will support on the legal and constitutional points related to super tax. He said I will adopt all the remaining arguments of Asma Hamid.
Justice Muhammad Ali Mazhar remarked that you should try to complete the arguments on the points tomorrow.
The hearing of the case was postponed until tomorrow.
