ISLAMABAD: The Federal Board of Revenue (FBR) is determined and optimistic to meet the revenue collection target under the super tax. The government fixed Rs 25 billion revenue target while announcing super tax in the Finance Act for the current fiscal year.
In lieu of the Finance Act, in September last year, the FBR issued draft rules to levy super tax that was announced for rehabilitation of temporary displaced persons.
The tax is to be paid by banking companies at the rate of 4% of income and by all other taxpayers at 3 % of income; the latter being required to pay only if income is equal to or in excess of Rs500 million.
“Presently, FBR has made a collection of Rs 12 billion under this tax and remaining Rs 13 billion will be collected in remaining fiscal year” Member Strategic Planning, Reforms and Statistics Dr. Muhammad Iqbal told Customs Today in an exclusive interaction.
He said that around 22 companies challenged the FBR’s action of levy of super tax in the Sindh High Court, which halted the revenue collection under this tax; however, till the passage of stay order by the court FBR had collected some Rs 12 billion under this tax.
Therefore, he said that last month federal government filed a petition in the Supreme Court seeking suspension of a Sindh High Court (SHC)-issued interim order which had dented the government’s plan to raise revenues under this head.
However, he said that the Lahore High Court (LHC) dismissed the petition for interim relief against section 4B of super tax, Income Tax Ordinance 2001 of DG Khan Cement Company Limited and said that it was still valid according to law and no relief granted until its complete struck down by the superior courts of Pakistan.
“Therefore, after the dismissal of petition of the petitioner against super tax by the court, now we are determined to achieve the revenue target under the head of Super Tax” Dr Iqbal observed.
