ISLAMABAD: The Federal Constitutional Court (FCC), with Asma Hamid appearing as the principal counsel for the Federal Board of Revenue, announced its short order 27th January in the batch of petitions challenging Sections 4B and 4C of the Income Tax Ordinance, 2001 (the “super tax” cases), thereby upholding the levy which is expected to generate substantial revenue of Rs 200 billion.
Advocates Supreme Court (ASC) Makhdoom Ali Khan, Faroogh Naseem, Salman Akram Raja and other prominent ASC represented the taxpayers.
In respect of Section 4B, the Court dismissed the taxpayers’ appeals and declared the provision to be constitutionally valid, holding that the levy imposed there-under constitutes a valid tax under the Constitution.
READ MORE: FCC upholds parliament’s authority to pass tax laws with retrospective, prospective effects
As regards Section 4C, the Court dismissed the appeals filed by the taxpayers and allowed the appeals filed by the tax department and the Federation, holding that Section 4C is constitutionally valid as enacted and that its application to the relevant tax year is not barred on account of retrospectivity.
The Court held that Section 4C super tax is applicable at the rate of 10percent for the tax year 2022 on the 15 sectors identified in the First Proviso to Division IIB of the Ordinance, where the income of such persons exceeded Rs 300 million during the relevant tax year.
Copyright Business Recorder, 2026
Comments
Comments are closed for this article.