ISLAMABAD: The Supreme Court of Pakistan raised important questions about the distribution of super tax funds during a recent hearing.
A five-member constitutional bench, led by Justice Aminuddin Khan, examined whether the federal government has the authority to allocate these funds to provinces. This discussion focused on the legality of the super tax and its distribution.
Justice Jamal Khan Mandokhail expressed concerns about the federal government’s power to share super tax revenue. He asked if this revenue, whether Rs8 or Rs8 trillion, could be divided among provinces.
Senior lawyer Makhdoom Ali Khan argued that income tax is collected without specific distribution and goes into the national treasury.
Makhdoom highlighted that the 1973 Constitution does not allow tax proceeds for provincial distribution unless explicitly stated. He explained that the super tax was introduced in 2016 to support the rehabilitation of displaced persons. Yet, the funds have not been used for this purpose, despite extensions made in subsequent years.
Additional Attorney General Hafiz Ahsan confirmed that the court proceedings do not address fund distribution at this stage.
The hearing adjourned, with Makhdoom planning to continue his arguments in the next session. Justice Aminuddin Khan asked for an estimate on how long he would need, signaling that the court intends to thoroughly review the case.
