FCC slams the door on super tax review

Pakistan’s Federal Constitutional Court rejected more than 250 review petitions challenging the super tax on November 11, leaving its January 27 ruling in force. Mettis Global reported that the court found no basis to revisit its earlier decision upholding the levy under sections 4B and 4C of the Income Tax Ordinance, 2001.

The petitioners included listed banks, fertilizer producers, energy companies, cement makers, textile firms and other businesses. The court said review is limited to clear errors or other legally recognized flaws, and that arguments on the tax’s constitutionality, retrospective application, equality and calculation had already been addressed.

The ruling also rejected challenges concerning petroleum exploration and production protections and certain funds, while leaving individual assessments or implementation questions to be dealt with under the law. It said financial consequences and the number of affected taxpayers did not expand the narrow scope for review.