Justice Mazhar says firms ‘must pay only what’s due’ as SC continues hearing on super tax

• Five-member SC bench continues deliberation on legality of super tax
• Justice Mazhar says law clearly defines profit threshold for taxation, Justice Mandokhail seeks clarity on discrimination in tax regime

ISLAMABAD: Supreme Court Judge Justice Muhammad Ali Mazhar on Thursday remarked that the law governing the super tax clearly outlines the profit threshold for liability, saying that “companies must pay only what is legally due.”

A five-member bench, headed by Justice Aminuddin Khan and comprising Justice Jamal Khan Mandokhail, Justice Muhammad Ali Mazhar, Justice Ayesha Malik, and Justice Hasan Azhar Rizvi, heard a series of petitions challenging the imposition of the super tax.

At the outset, Advocate Farogh Naseem concluded his arguments on behalf of several companies contesting the tax.

During the hearing, Justice Mazhar observed that the petitioners’ stance appeared to imply taxing even those companies that were not liable. Justice Mandokhail interjected, asking, “You mean there should be no discrimination?” To this, Justice Mazhar clarified that once a tax is imposed under the final tax regime, it cannot be levied again, though the super tax is treated as a separate category under fiscal law.

Advocate Aziz Nishtar, representing the Pakistan Tobacco Company, argued that Article 18 of the Constitution guarantees the right to conduct business freely, lamenting that the government had failed to provide a conducive business environment. “We are being taxed even without making profits,” he claimed, adding that the super tax was often introduced when the government urgently needed revenue.

Justice Mazhar questioned whether widening the tax base could improve business conditions.

Advocate Ejaz Ahmed further contended that the Finance Bill introducing the super tax had been passed without fulfilling the procedural requirements under Article 73 of the Constitution, arguing that it was imposed abruptly and without a formal policy statement.

The bench adjourned the hearing until Friday, when the court will resume proceedings on the legality and scope of the super tax.