ISLAMABAD: Highly Paid Income individuals in Pakistan have been required to pay half of the Super Tax imposed by the Finance Act 2022 within seven days ordered by the Supreme Court (SC).
The two-member SC bench overturned the interim order of the Lahore High Court on Monday, lifting the suspension of the recovery proceedings against the Finance Act 2022’s imposition of the Super Tax. The postdated checks issued to the petitioners can now be cashed.
The Super Tax was imposed by the Finance Act of 2022, resulting in a Rs. 247 billion that was at stake in the legal battle.
“a super tax shall be imposed for the tax year 2022 and onwards at the rates specified in Division IIB of Part I of the First Schedule, on the income of every person,” states Section 4C of the Income Tax Ordinance of 2001. The legislation addresses the super tax on high-earning individuals.
The 13 industries that were subject to the government’s ten percent “super tax” included steel, banking, cement, cigarettes, chemicals, beverages, liquefied natural gas (LNG) terminals,” airlines, textiles, automobiles, sugar mills, oil and gas, and fertilizer.
The high courts’ interim relief against the Super Tax has now been rejected by the Supreme Court.
In a tweet, the Federal Board of Revenue (FBR) stated that the parliament imposed a Super Tax on the profits of wealthy corporations that made more than Rs. 150 million through the 2022 Finance Act. The Honorable Lahore High Court halted the imposition of this tax through an interim order.
FBR’s petitions claim that the Supreme Court mandated that fifty percent of the owed debt be settled within seven days.
