On Feb 7, rich taxpayers were ordered by the Supreme Court to deposit their 50% due super tax with the Federal Board of Revenue (FBR) within one week.
Previously:
The development comes after the Lahore High Court (LHC) changed an interim ruling. A three-member panel led by Pakistan’s Chief Justice Umar Ata Bandial heard the FBR’s appeal against the challenged temporary judgement which halted the collection efforts against high-earning taxpayers.
The Supreme Court’s ruling came as Pakistan’s tax authorities were negotiating new taxing policies with the IMF delegation. They are due to visit the country to close the rising fiscal imbalance in 2022–2023.
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The IMF team is expected to conclude its policy debate and depart for Washington on Feb 9. The final revenue measures are anticipated to be made public. Previously, taxpayers contested the retroactive application of the super tax by LHC.
What you need to know:
However, the LHC order from September 29, 2022, was contested in the Supreme Court by FBR. The case was represented by Ms. Asma Hamid. The government imposed a super tax on those with high incomes through the Finance Act 2022 by adding a new section 4C to the income tax law. 13 industries earning more than Rs150 million would be subject to a 10 percent super tax.
Steel, banking, cement, tobacco, chemicals, alcohol, liquefied natural gas terminals, textile, auto, sugar refineries, oil and gas, and fertiliser are among the industries.
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