ISLAMABAD: A division bench of the Islamabad High Court (IHC) on Thursday adjourned the hearing of a tax matter, challenging a recovery notice issued under ‘Super Tax Regime 2015’.
M/s Pakistan Tobacco Company Limited had filed the case which was heard by IHC division bench comprising Justice Athar Minallah and Justice Miangul Hassan Aurengzeb for the second time. The bench adjourned the hearing on the matter for further arguments.
Earlier, this case was heard by a single bench of the IHC. The appellant had approached the court challenging the previously given decision. Through the petition, M/s Pakistan Tobacco Company had challenged imposition of ‘Super Tax Regime 2015.’
Super tax is being imposed for collecting funds for rehabilitation of temporarily displaced persons under provisions of Income Tax Ordinance, 2001 after inserting Section 4-B of Finance Act, 2015 in the Income Tax Ordinance, 2001.
The petition has challenged super tax imposition stating that double tax was being charged under section 4-B of Finance Act, 2015 as the Federal Board of Revenue was using the said section (4-B) of Finance Act, 2015 for charging of Super Tax separately under Income Tax Ordinance, 2001. Hence, the section was being used to charge tax twice, petitioner stated.
M/s Pakistan Tobacco Company Limited also submitted before the court that super tax should be imposed on rich people only under particular division, 11-A, of first schedule on income of every person specified in ‘sold division.’
“The tax is being imposed on taxpayers under section 4-B, which itself is charging section, hence, under this provision it cannot be charged twice”, the company said.
M/s Pakistan Tobacco Company Limited had filed the case against officers of Ministry of Finance (MoF) and FBR.
Commissioner Inland Revenue (Audit), additional commissioner Inland Revenue (Audit), and deputy commissioner Inland Revenue (Audit), Large Taxpayers’ Unit were made directed respondents in the case.
