ISLAMABAD: The Lahore High Court (LHC) has also suspended the SRO 1588(I)/2023 of the Federal Board of Revenue (FBR) which has imposed 40 percent additional tax on windfall income of banks.

It is reliably learnt that the LHC in a writ petition No78520/2023, filed by a bank, stayed tax imposed under section 99D read with SRO1588(I)/2023 dated November 21, 2023 at the rate of 40 percent on foreign exchange income of the banks as windfall gains.

Attachment of bank account: LHC takes notice of ‘illegal’ recovery by FBR

It is further learnt that the order passed by Justice Anwar Hussain suspending the SRO by caretaker government also contained details of vires challenged of impugned law and notification and fixing December 11, 2023, as date of hearing with notice to Attorney General for Pakistan under section 27A of CPC.

The same order was issued for two big banks assessed in Lahore.

Earlier, the Islamabad High Court (IHC) had suspended the SRO 1588(1)/2023.

The petitioner banks are aggrieved of the impugned SRO 1588(1)/2023, dated 21.11.2023, issued under section 99D of the Income Tax Ordinance 2001 by which the banking companies have been subjected to “additional tax” at 40 per cent on their windfall income that is to be computed in accordance with the formula given in the impugned SRO.

Copyright Business Recorder, 2023