SC turns down FBR appeals in case of additional tax on salaried class

The Supreme Court (SC) on Monday rejected the appeals filed by the Federal Board of Revenue (FBR) regarding levying additional tax on the salaried class. A three-member bench of the apex court, headed by Chief Justice of Pakistan (CJP) Justice Umar Ata Bandial, heard the appeals. During the hearing of the appeals, Justice Mansoor Ali Shah asked the lawyers representing the FBR as to what was the logic behind levying 30 per cent tax on those drawing Rs1 million in salary in the corporate sector. “We want to know the reason behind that,” CJP Justice Umar Ata Bandial insisted. Justice Qazi Faez Isa went even further and said the court wanted to know as to why the tax was not imposed on the lawyers who were paid Rs1 million in fee. “Similarly, we are interested in knowing as to why you did not levy tax on the businessmen having income of Rs1 million,” he said, and added, “Many people in Pakistan earn more than Rs1 million.” The Board’s lawyer replied that the additional tax had been levied only on ‘bonus’. Justice Mansoor asked, “Is bonus not part of the salary?” Addressing the FBR lawyers, Justice Isa remarked that they were free to tax as much as they could. “But treat all professions alike; don’t make a discrimination between the people belonging to different professions,” he asserted. Speaking on the occasion, the additional attorney general (AAG) said that it was the government’s discretion who to tax and how much. Justice Mansoor said that when a company earned profit, it gave bonus to its employees. “But instead of taxing owner of the company, you levied tax on its employee,” the judge regretted. The AAG said that it was the corporate sector which the government had taxed. “And what is the definition of the corporate sector?” Justice Mansoor questioned. The AAG replied there was no definition. The CJP again said he was at a loss to understand what led the government to levy additional tax on the salaried class. [6:31 pm, 05/09/2022] Pt Boss: US delegation visits parliament house, affirms cooperation ISLAMABAD, Sept 05 (INP):US Congresswoman Sheila Jackson Lee and US Ambassador to Pakistan Donald Blome visited Parliament House and called on Senate chairman and speaker of National Assembly on Monday. Ms Lee, Thomas Richard Suozzi and Mr Blome met with National Assembly Speaker Raja Pervez Ashraf and Senate Chairman Sadiq Sanjrani. Mr Tanveer Ahmad also accompanied the US dignitaries. During their meetings, the US delegation exchanged views on mutual relations. Mr Sanjrani said that Pakistan attached high value to its decades-old relations with America adding that the constructive ties between the two countries would pave way for creating peace and progress in the region. A five-member delegation from the US headed by Congresswoman Sheila Jackson Lee visited flood-hit areas in Dadu district on Sunday. The US delegation which also included ambassador Donald Blome reviewed the flood situation on the ground and during an aerial view of the area. The members of the delegation were briefed by Major General Dilawar Khan, Brigadier Hasnat Ahmed and DC Dadu Syed Murtaza Ali Shah about the ongoing relief activities and losses caused by the torrential rains and floods in the affected areas. The delegation praised the rescue and rehabilitation efforts of the armed forces. The US congresswoman also met with flood victims and distributed gifts among them. The delegation reiterated its commitment that America and the American people stood with Pakistan in this hour of difficulty. The hosts reiterated to further strengthen the friendship between the two countries. They assured Pakistan of USís generous assistance in the form of food, tents, and medicines to deal with the flood disaster.