The Supreme Court directed wealthy organisations, earning over Rs150 million, to deposit 50% of the super tax imposed on them with the Federal Board of Revenue (FBR) within seven days, as IMF tightens the noose around government to ‘do more’ for next bailout. The FBR has projected Rs250bn from the imposition of the super tax in FY23.
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A three-member bench, headed by Chief Justice of Pakistan Umar Ata Bandial, took up the FBR plea against the impugned interim order which had stayed the recovery proceedings from high-earning taxpayers.
Taxpayers challenged the imposition of super tax with retrospective effect for the tax year 2022 and onward before the Lahore High Court (LHC), terming it ‘unconstitutional’.
After suspending the interim order of the high court, the apex court allowed the FBR to recover 50% of the super tax from these industries within a week.
Last year, Prime Minister Shehbaz Sharif had announced the imposition of a 10% super tax, also dubbed as “poverty alleviation tax” on 13 major segments to augment tax collection.
The government had said that the “tough decisions” were taken to protect the economy.
The sectors that were to be taxed included cement, steel, banking, airlines, textile, automobile assembling, sugar mills, beverages, oil and gas, fertiliser, cigarettes, chemicals and LNG terminals.
Source: Dawn
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