ISLAMABAD: Islamabad High Court (IHC) announced its reserved verdict declaring the imposition of a super-tax on high-income businesses as unconstitutional.
Justice Sardar Ejaz Ishaq Khan presided over the case, effectively removing the legal basis for the super tax. The petitioners, who questions the validity of the tax, were represented by prominent legal counsel. It including Salman Akram Raja and Adnan Haider Randhawa, among others.
Providing relief to the affected businesses by deeming all notices of demand and recovery related to the controversial tax null and void. Furthermore, the court invalidated Section 4C of the Income Tax Ordinance.
The petitioners, represented by legal counsel including Salman Akram Raja and Adnan Haider Randhawa, contended that the imposition of the super-tax was unjust and would adversely impact the growth of high-income businesses.
However, The Finance Minister, Ishaq Dar, had introduced this tax during his budget speech the previous month. Initially, the super tax was propose to be applicable to individuals earning Rs500 million or more annually. But later the conditions were ease, and it was adjust to apply to those earning Rs300 million per annum.
In February, the Supreme Court approved the super tax, setting it at 4% for all industries. Initially, the government imposed a higher rate of 10% on some industries and 4% on others. The Lahore High Court had also given its approval, but it stated that the rules did not permit a tax rate higher than 4%.
