Supreme Court to conduct daily hearings in ‘Super Tax’ case

ISLAMABAD: The Supreme Court has decided to conduct daily hearings in the highly anticipated ‘super tax’ case. This development comes after Justice Aminuddin Khan noted that Justice Aamer Farooq, who had previously ruled on the matter in the Islamabad High Court, cannot preside over the case in the Supreme Court.

As a result, the existing bench was dissolved, causing a temporary delay in proceedings. A new five-member bench will be constituted to hear the case.

Company lawyers had requested the court to postpone the hearing until after Eid-ul-Fitr, but the court rejected the plea. Justice Muhammad Ali Mazhar emphasized that the case will not be completed by Eid and stressed the importance of proceeding with the hearings.

“At the very least, the hearings should begin,” he added. To facilitate the proceedings, Justice Mazhar directed the preparation of separate paper books for judicial rulings on Sections 4B and 4C of the relevant tax laws. The court also granted the parties time to secure legal representation.

The ‘super tax’ case has its roots in a challenge by the federal government to an Islamabad High Court stay order. The order had blocked a 15% additional income tax on banks’ excessive lending to the finance ministry.

The Federal Board of Revenue (FBR) is facing a significant shortfall of PKR190 billion and is struggling to recover PKR1.03 trillion. The tax, reinstated in 2024, aims to encourage banks to lend to industries rather than the government.

The Islamabad High Court had granted relief to Askari Bank, setting a precedent for other banks to follow.