FBR collecting around Rs 15 billion per year through super tax

The Federal Board of Revenue (FBR) is annually collecting revenue of around Rs15 billion from super tax imposed on rich individuals, Association of Persons (AoPs) and companies earning income above Rs500 million in a tax year. Sources told Business Recorder here on Monday that every year the FBR is collecting an amount of nearly Rs15 billion on account of super tax. Super tax was levied at the rate of 4% on every banking company and 3% for every person, other than a banking company, having income of Rs500 million and more, for tax year 2015. It was extended for the tax year 2016 through Finance Act 2016. In each year, the FBR is generating revenue to the tune of Rs15 billion from super tax.
It is important to mention that the taxable income for the purpose of computation of super tax on corporate sector shall be taken before the adjustment of brought forward depreciation or business losses. The FBR had clarified through amendment in sub-section (2) of section 4B of the Income Tax Ordinance that taxable income for the purpose of computation of super tax shall be taken before the adjustment of brought forward depreciation or business losses.