ISLAMABAD – The Supreme Court on Thursday ordered the large-scalemanufacturing industries to pay a 4 per cent super tax.
A supreme court bench consisting of Chief Justice Umar Ata Bandial, JusticeAyesha A. Malik and Justice Athar Minallah heard the federal government andthe Federal Board of Revenue (FBR) appeals regarding the recovery of thesuper tax.
It should be noted that various industries had challenged the super taxlevied in budget 2022-23 with retrospective effect after which the SindhHigh Court invalidated the collection of the 10pc super tax from the lastfiscal year.
Last year, Prime Minister Shehbaz Sharif announced a 10pc tax on majorindustries including cement, steel, sugar, oil and gas, fertilisers, LNGterminals, textiles, banking, automobiles, chemicals, beverages andcigarettes.
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Through the Finance Act 2022, the government introduced a new section C-4in the Income Tax Ordinance to impose a super tax on high-income earners.Through this section, the FBR imposed a 10pc super tax on 13 sectorsearning more than Rs150 million with restrospective effect from July 1,2021.
The decision had since been challenged on various grounds in almost all thehigh courts of the country. Similarly, more than 100 petitions were filedin the Sindh High Court challenging the constitutionality of the provisionsof the Finance Act 2022. The petitions stated that the federal governmenthad also imposed a tax on past transactions in the Finance Act 2022.
