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Super tax saga
['News Desk']
Pakistan Observer
AFTER a long running legal battle, the Government got a major relief on Tuesday when the Federal Shariah Court (FCC) upheld imposition of super tax, affirming the parliament’s authority to legislate on taxation.
The court disposed of over 2,200 long-pending tax cases concerning sections 4(b) and 4(c) of the Income Tax Ordinance 201, safeguarding an estimated Rs310 billion in public revenue.
The cases pertained to tax levies under Section 4(b) for Tax Year 2015 and Section 4(c) for Tax Year 2022.
The FCC held that courts cannot re-determine tax slabs, rates, thresholds, or fiscal policy, and that high courts committed judicial overreach, violating the doctrine of separation of powers.
150 to 200 billion during the ongoing quarter to minimize the tax shortfall, obviating the need for a mini budget or shifting of additional burden on the existing tax payers.