The Federal Constitutional Court (FCC) questioned the large disparity between revenue collected under the super tax and the amount actually spent on the rehabilitation of internally displaced persons (IDPs), during hearings on Tuesday.
Justice Syed Hassan Azhar Rizvi, a member of the three‑judge bench, noted that while Rs144 billion was collected under Section 4B of the Income Tax Ordinance between 2015 and 2020, only Rs37 billion had been used for IDP rehabilitation, expressing concern that the levy’s intended purpose was being undermined
Additional Attorney General Chaudhry Aamir Rehman told the court that around 50 percent of super tax revenue had been disbursed through provincial channels and that total collections reflected the government’s revenue ambitions. He also highlighted social welfare spending such as the Benazir Income Support Programme as part of the broader use of tax revenues.
The bench, led by Chief Justice Aminuddin Khan, is hearing multiple appeals against high court judgements on the legality of the super tax, which was introduced in 2015 via the Finance Act with the stated aim of funding rehabilitation in areas affected by counter‑terrorism operations. It applies to individuals, associations and companies with income above Rs500 million, with a 4 percent rate for banking firms and 3 percent for others.
Senior counsel for taxpayers questioned the authority of the Inland Revenue Commissioner to file appeals in the case, arguing that when neither the federal government nor the Federal Board of Revenue were aggrieved by the high court rulings, the commissioner could not independently pursue the matter.
Representing the FBR, Advocate Hafiz Ehsaan Ahmad Khokhar said tax policy falls within parliamentary authority and urged the court to uphold the validity of the super tax as a lawful levy consistent with constitutional and fiscal norms.
