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ISLAMABAD, Jan 08 (APP):The Federal Constitutional Court of Pakistan (FCCP) on Thursday adjourned until Friday the hearing of various petitions related to the super tax.
The proceedings were conducted by a three-member bench headed by Chief Justice Aminuddin Khan, during which senior advocate Makhdoom Ali Khan continued his arguments on behalf of several taxpayer companies. He will conclude his submissions at the next hearing.
During the proceedings, Makhdoom Ali Khan cautioned the court that if the current approach to imposing taxes continued, the consequences would have to be faced.
He argued that Section 4C of the Income Tax Ordinance, 2001, does not permit tax classification, nor does it contain clear and legally precise language. The counsel contended that the government had issued a mere notification to continue tax collection, while the definitions of income under Sections 4C and 4B had been altered. He added that both sections fail to allow deductions for expenses and losses, which is against fundamental principles of taxation law.
Referring to the economic impact of COVID-19, Makhdoom Ali Khan said all sectors — particularly petroleum and aviation — had suffered heavy losses, yet the government did not introduce any relaxation in its tax policy.
He further stated that local investors face numerous questions before choosing to invest in Pakistan, while instead of reducing tax burdens, exemptions are frequently increased.
At this point, Justice Hasan Azhar Rizvi remarked that the provisions of the tax ordinance clearly stipulate that local companies must be based in Pakistan.
The Federal Constitutional Court later adjourned further proceedings of the super tax cases until tomorrow.