FBR tells SC: Chambers, CAs consulted before inserting Sec 4C in tax law

ISLAMABAD: The Federal Board of Revenue (FBR) told the Supreme Court that it consulted the chambers of commerce and chartered accountants before inserting Section 4C in the Income Tax Ordinance vide Finance Act, 2022.

A five-judge larger Constitutional Bench, headed by Justice Amin-ud-Din Khan, on Thursday heard the appeals of the Federal Board of Revenue and the industries against the judgments of the Sindh, Lahore, and Islamabad High Courts regarding the levy of Super Tax under Section 4C.

Member (Legal) FBR Badshah Khan Wazir, who was present in the Court, informed that after consulting the representatives of chambers of commerce from Islamabad, Lahore, Karachi, and Sialkot, and the chartered accountants, the proposal was prepared for the levy of Super Tax.

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Member (Legal) was responding to the query raised by Justice Hassan Azhar Rizvi, who asked whether the FBR held any meeting with the representatives of the Chambers of Commerce, and took suggestions/input from the financial experts on Super Tax?

Asma Hamid, FBR lead counsel, told the bench that the Finance Minister, in his speech, had referred to these consultations and the windfall profit earned by certain sectors.

Justice Jamal Khan Mandokhel questioned whether there was any discussion held in the Parliament on the issue of discrimination against different sectors.

Asma replied that discrimination was discussed in the Parliament. She submitted that the Finance Minister, in his speech, had proposed that on the basis of economic need and windfall profit, a 10 percent Super Tax be levied on high-earning persons, adding that this news was reported in all the major newspapers.

Copyright Business Recorder, 2025