Chief Justice Denies Default Rumors, Asks Govt to Curb Dollar Smuggling

Chief Justice of Pakistan (CJP) Umar Ata Bandial on Friday rejected the notion that Pakistan was on the verge of bankruptcy and urged the government to take steps to combat smuggling foreign currency. A three-judge bench led by the CJP resumed hearings on the Federal Board of Revenue’s (FBR) challenge to the Lahore High Court’s (LHC) prohibition on the taxman levying a “super tax” on industries. In June of last year, the government announced plans to levy a one-time 10 percent tax on large-scale industry profits in order to mitigate the impact of rising inflation on the poor. The FBR estimated that the super tax would generate Rs. 250 billion in FY23. Today, the Supreme Court of Pakistan attempted to group all super tax petitions so they could be heard together. FBR counsel Faisal Siddiqui informed the court at the start of the hearing that the LHC had suspended the implementation of its final decision in the case for 60 days. Barrister Farogh Naseem, who represented the companies, argued that after the announcement of the LHC decision, all FBR petitions against the interim order had become ineffective. The CJP stated that the super tax was imposed in “good faith” by the FBR, and acknowledged Shell Pakistan as one of the companies that paid millions in taxes. In response, the FBR counsel said he was representing the tax machinery in the current case, adding that he would \represent the federal government if the country defaulted. The CJP cut him off, saying that the country was not going bankrupt. Following the issuance of the directives, the court adjourned the hearing until February 16. via Dawn