Islamabad: During the Supreme Court hearing on the case related to the super tax, there was an in-depth discussion regarding the tax imposed on the tobacco industry, cigarette prices, and profit margins. The court remarked that taxes are not only paid by companies but also by consumers.
A five-member constitutional bench, led by Justice Aminuddin Khan, presided over the case. The lawyer representing the petitioner company, Ejaz Ahmad Zahid, completed his arguments. The court adjourned the hearing until Monday.
The lawyer informed the court that only 10 tobacco companies are registered with the Federal Board of Revenue (FBR) in Pakistan. He further explained that for a cigarette pack priced at 77 rupees, a tax of 44 rupees is imposed, while the company makes a profit of 33 rupees. According to him, the current law does not allow for unusually high profits.
During the hearing, the FBR’s lawyer changed their stance and presented a new table to the court.
Justice Muhammad Ali Mazhar stated that the court would not delve into the facts of the case but would make a decision on constitutional questions. Justice Jamal Khan Mandokhail remarked, “You’re not paying all the taxes yourself; those who smoke cigarettes are also paying.”
Justice Hassan Azhar Rizvi observed, “Your company is still making 300 million rupees in profits despite low margins. You deserve some credit for that.”
The lawyer argued that they were under pressure from the IMF, to which Justice Mandokhail questioned, “If your cigarettes are sold in Afghanistan, who will be responsible?” The lawyer responded that if someone else smuggled the cigarettes, it was not the company’s responsibility.
The court indicated that in order to reduce the fiscal deficit, it is essential to stop sources of leakage, rather than merely placing the burden on specific sectors.
The court adjourned the hearing until Monday.
