ISLAMABAD, Oct 08 (APP): The Supreme Court’s eight-member constitutional bench on Wednesday adjourned the hearing of the super tax cases until Thursday.
During the proceedings, counsel for various companies, Barrister Farogh Naseem, continued his arguments, which will resume tomorrow. He contended that Section 31-A is not part of the Income Tax Ordinance, adding that customs duties are imposed through different notifications and that sales tax cannot be levied on imports after the enforcement of Section 31-A.
Farogh Naseem further argued that the income tax system has been functioning on the same pattern for the past two centuries and that the true financial position of a taxpayer can only be determined after accounting for expenditures.
Justice Aminuddin remarked that a taxpayer’s actual financial standing is reflected in the tax return.
At one point, when Farogh Naseem questioned, “My accounts were closed ten months ago, so how can tax still be imposed?” Justice Jamal Mandokhail humorously remarked, “You mean to say—don’t cut the tree, just enjoy its fruits?”
Farogh Naseem also pointed out that banks in Bangladesh are taxed at 21 percent, while in Pakistan, the rate stands at 93 percent.
Following the arguments, the court adjourned further hearing of the case until Thursday.