Federal Constitutional Court restores super on corporate income

Islamabad (Web Desk): The Federal Constitutional Court has upheld the Super Tax case verdict, declaring Section 4-C of the Income Tax Ordinance fully constitutional.

In a detailed 293-page judgment, the court ruled that the super tax is a separate levy from income tax and affirmed that Parliament has complete constitutional and legal authority to impose it.

The court also set aside the Islamabad High Court’s order directing issuance of a circular, stating that the decision was beyond its jurisdiction.

According to the ruling, the super tax will apply from tax year 2022, which is expected to significantly support government revenue collection of pending taxes.

Capital gains and specific types of income have been brought under the scope of the levy.

The court further observed that changes in the country’s financial structure and the imposition of new taxes fall within Parliament’s exclusive authority.

Legal experts say the decision will help the federal government recover billions of rupees that were previously stuck due to ongoing litigation and has clarified ambiguity regarding the application of tax laws.