Islamabad, May 6, 2025: The Supreme Court’s constitutional bench on Tuesday raised serious questions over the collection and distribution of Rs 80 billion in super tax revenue, with senior lawyer Raza Rabbani, representing the Federal Board of Revenue (FBR), conceding he had failed to clearly explain the allocation process.
“I apologise for not being able to properly clarify the matter before the court,” Rabbani told the five-member bench, headed by Justice Aminuddin Khan.
Justice Muhammad Ali Mazhar expressed concern over the ambiguity in fund usage, remarking, “Money should only be spent for the purpose it is collected.” He asked, “If 42.5% of the Rs 80 billion goes to the federation, where does the remaining amount go?”
Rabbani responded that the federal government’s share would be distributed under the National Finance Commission (NFC) Award.
Justice Jamal Khan Mandokhail questioned the rationale behind the allocation: “Who exactly are the affected people these funds are meant for? If the budget speech outlines the purpose, why is the money being spent across the entire country?”
Defending the government’s position, Rabbani argued, “The funds are to be spent through the federal government. The fight against terrorism is a national issue, and these funds are for victims from KP and FATA.”
Justice Mandokhail pushed back strongly: “If I collect money in your name but don’t spend it on you, is that fair? The 18th Amendment is in effect — this approach could undermine the NFC Award. These funds come from the entire country, and all provinces have a right to them.”
Rabbani once again expressed regret, clarifying, “All funds are deposited into the Federal Consolidated Fund, and allocations are made to provinces in accordance with the NFC Award.”
During the proceedings, senior advocate Makhdoom Ali Khan, representing private sector petitioners, requested the court summon the Auditor General of Pakistan and the Secretary of Finance to provide clarity on the matter. Justice Aminuddin Khan said the court would consider the request after hearing from the Attorney General.
The hearing was adjourned until Wednesday, with Raza Rabbani scheduled to resume his arguments.
