FCC reserves ruling on petitions challenging Super Tax judgement

Pakistan’s Federal Constitutional Court (FCC) has reserved its decision on petitions seeking a review of its January 27 judgment that upheld the Super Tax. The court also indicated that Sections 4B and 4C of the Income Tax Ordinance would operate from the dates they were imposed, Dawn reported on November 3.

The petitions, brought by Colgate-Palmolive Pakistan, The Searle Company, JS Bank, Pakistan Refinery and other taxpayers, challenge the tax’s application to income earned before the relevant law took effect. Lawyers argued that the 2022 levy was retrospective and sought relief on matters including tax year 2022, final-tax income and the treatment of carried-forward losses and depreciation. The Super Tax applies to individuals, associations and companies earning above Rs500 million, at 4 per cent for banks and 3 per cent for other sectors.