Supreme Court Orders Taxpayers to Pay 50% of Super Tax Within 7 Days

The Supreme Court (SC) of Pakistan has directed high-income earners to pay 50 percent of the due amount of Super Tax imposed under the Finance Act 2022 within seven days.

The two-member bench of the SC on Monday overruled the interim order of the Lahore High Court which had stayed the recovery proceedings against the imposition of the Super Tax through the Finance Act 2022. The post-dated cheques of the petitioners can now be encashed.

The total revenue impact of the Super Tax imposed through the Finance Act 2022 is Rs. 247 billion which was in litigation.

Section 4C of the Income Tax Ordinance 2001 deals with the super tax on high-earning persons, states that “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.”

The government had imposed a 10 percent “super tax” on 13 sectors including steel, banking, cement, cigarettes, chemicals, beverages, and liquefied natural gas (LNG) terminals,” airlines, textile, automobile, sugar mills, oil and gas, and fertilizer.

The interim relief provided by the high courts against the Super Tax has now been overruled by the SC.

In a tweet, the Federal Board of Revenue (FBR) said that parliament imposed a Super Tax on profits of wealthy corporations whose earnings exceeded Rs. 150 million through the Finance Act 2022. The Honorable Lahore High Court stayed the imposition of this levy through an interim order.

On petitions filed by FBR, the Supreme Court directed that 50 percent of the due liability be paid within 7 days, FBR said.

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