ISLAMABAD: A division bench of the Islamabad High Court (IHC) reserved a decision on M/s Pakistan Tobacco Company Limited’s tax matter on Thursday.
The division comprising Justice Athar Minallah and Justice Miangul Hassan Aurengzeb heard the case and reserved decision on the matter after hearing arguments for couple of weeks by the sides.
M/s Pakistan Tobacco Company Limited had filed the petition challenging collection of “super tax” against the formulated terms and conditions.
Super tax is 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, 11A, 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”, M/s Pakistan Tobacco Company Limited stated.
M/s Pakistan Tobacco Company Limited had filed the case against officers of Ministry of Finance (MoF) and the Federal Board of Revenue (FBR). Commissioner Inland Revenue (Audit), Additional Commissioner Inland Revenue (Audit), and Deputy Commissioner Inland Revenue (Audit), Large Taxpayers’ Unit were made respondents in the case.
