The Supreme Court’s constitutional bench is set to hear petitions against Sections 4B and 4C of the Income Tax Ordinance (ITO), 2001, concerning the Super Tax, on Monday.
A five-member bench, led by Justice Aminuddin Khan, will also address the impleadment application filed by the Peshawar High Court (Mingora Bench) Bar Association, challenging the 25th Constitutional Amendment as ultra vires.
Over 400 petitions have been filed against the amendments to the Income Tax Ordinance, which introduced the Super Tax to finance the rehabilitation of temporarily displaced persons (TDPs) following the military operation Zarb-e-Azb in North Waziristan. The tax, imposed through the Finance Act 2015, affects individuals, associations, and companies with an income exceeding Rs500 million, levying 4% on banking companies and 3% on others.
Ijaz Ahmed Awan, representing several taxpayers, argues that the funds for TDP rehabilitation should fall under the provincial domain as per the 18th Amendment, and claims the Super Tax is unconstitutional and lacks the characteristics of a legitimate tax. He also asserts that the tax was imposed through an improper process, bypassing the standard procedures required for such levies, and violates constitutional provisions, particularly Article 25, on equal treatment under the law.
Awan has requested the Court to set aside the Lahore High Court’s decision on the matter.