ISLAMABAD: The Supreme Court of Pakistan today ordered the big manufacturing companies operating in Pakistan to pay four per cent super tax in 2023.
The Supreme Court’s three-member bench comprising Chief Justice Umar Ata Bandial, Justice Ayesha A. Malik and Justice Athar Minallah announced the decision on Friday.
The federal government and the Federal Board of Revenue (FBR) filed appeals with the apex court for the recovery of super tax.
Many large-scale companies had challenged the super tax levied in budget 2022-23 with retrospective effect. Resultantly, the Sindh High Court invalidated the collection of the 10pc super tax levied in 2011-22.
In 2022, Prime Minister Shehbaz Sharif announced a 10 per cent super tax on major industries. The industries are cement, steel, oil, gas, sugar, fertilisers, LNG terminals, textiles, automobile, banking, chemicals, beverages and cigarettes producers.
In 2022, the government incorporated a new section C-4 in the income tax ordinance in the Finance Act 2022.
Hence, the FBR imposed a 10pc super tax on 13 sectors which were earning over Rs150 million a year with effect from July 1, 2021.
The decision had since been challenged on various grounds in all the high courts of the country and the apex court today gave its verdict in this case.
While ruling on the above appeals, the Supreme Court ordered the payment of 4pc super tax to all the parties.