Thursday, Jan 15, 2026 | 25 Rajab 1447
Thursday, Jan 15, 2026 | 25 Rajab 1447
ISLAMABAD: The Federal Constitutional Court (FCC) was asked to keep in mind 27th Constitutional Amendment and other factors while delivering judgement on Super Tax under Sections 4B and 4C.
A three-member bench, headed by the Chief Justice Amin, on Wednesday heard the FBR appeals against the judgements of Sindh, Lahore and Islamabad High Courts regarding levy of Super Tax under Section 4C, inserted in the Income Tax Ordinance, 2001 through Finance Act 2015.
Farough Naseem, representing Karachi based taxpayers, said both the sides, particularly the FCC, would have to maintain the balance, in passing the judgement on the FBR appeals regarding levy of Super Tax under Sections 4B and 4C.
READ MORE: Super tax levy only under single tax regime, FCC told
“Please don’t unsettle the settled provisions. This is not in anyone’s interest to unsettle the settled law.”
He warned the bench that; “If you disturb the settled provisions then there will be judicial chaos,” adding the provisions of law are always prospective.
He further argued that the Federal Constitutional Court can’t ignore 75 years’ jurisprudence of Pakistan, adding if it (FCC) would do that then there would be judicial havoc. He further said that the Courts never bulldoze the past judgements, and hoped that the FCC would not bulldoze the 75 years’ jurisprudence.
Farough stated that if the Court would allow the Parliament to legislate law with retrospective effect, then there will be horrible consequences for the economic activity in the country.
He argued that the FCC is hearing the appeals against the judgements of the High Courts, which were passed in accordance with the law that was prevalent before the 27th Constitutional Amendment. He stated therefore the Court now has to see whether those judgements were correct according to the law of that time.
He contended that the Federal Board of Revenue (FBR) would have to establish that the judgements, passed by the High Courts (SHC, LHC & IHC) according to the laws of that time, were wrong. He stated that the FCC three-member is handicapped to examine the judgements delivered by the larger bench of the Supreme Court. If the FCC wants to do that then it would not be appropriate, he cautioned the bench.
Farough stated that the FBR’s claim that the Super Tax was imposed on individuals and the companies earning more than Rs 500 million was due to shortage of money, adding the FBR’s this policy would create chaos, as not only the foreign investors would move their businesses out of the country, but those companies who pay huge taxes would also run away. He suggested that the FBR has other means to generate funds.
He said General Ziaul Haq had imposed Martial Law which somehow was successful, but the Martial Law of Pervez Musharraf failed because he did not consider other factors.
Farough argued that though it cannot be said that the Supreme Court of Pakistan judgements are binding on the FCC. However, the FCC needs to keep in mind that those judgements were delivered by the highest court of the country before the 27th Amendment. His emphasis was that the High Courts had rightly set aside the Sections 4B and 4C in accordance with the law prevalent at that time.
The case was adjourned until Thursday (today).
Copyright Business Recorder, 2026
