Further our Technical Release 12/2023 dated November 28, 2023 wherein we have given our comments on the Windfall Income Tax on Banking Companies proposed to be levied by SRO 1588(I)/2023 dated November 21, 2023.
It is informed that Islamabad High Court as a result of the Writ Petition No 3926/2023 in the case of Askari Bank Limited and others has suspended the operation of the aforesaid SRO till next date of hearing.
It is good to note that the Honourable High Court has accepted both the matters raised in our Technical Release on windfall income on banking companies as a prima facie case for suspending the operation of the SRO till the next hearing.
Firstly, it has been accepted that the calculation proposed is not in line with the intent and purpose of substantive provision contained in Section 99D of the Income Tax Ordinance, 2001.
Secondly, it has also been accepted that there is no possibility of implementation of law before the said provisions are laid before the National Assembly as laid down in the substantive provisions of subsection (3) of Section 99D of the Ordinance.
The Federal Government is requested to withdraw SRO 1588(1)/2023 dated November 21, 2023 and issue a fresh notification in line with the provisions of Section 99D of the Income Tax Ordinance, 2001.
Copyright Business Recorder, 2023