ISLAMABAD: The Federal Shariat Court has upheld Section 4B of the Income Tax Ordinance, allowing Parliament to levy super tax. The decision clears objections to the case and enables the government to recover PKR 310 billion. Chief Justice Aminuddin Khan read the verdict, confirming that legislative authority supports taxing high-income individuals.
The super tax was first introduced in 2015 in Khyber Pakhtunkhwa to help victims of terrorism. It initially imposed a 5% levy on individuals earning more than PKR 300 million annually. High courts across Pakistan had already validated the tax, reinforcing its legal standing and enforceability.
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In 2022, the super tax expanded to individuals earning over PKR 150 million, with rates reaching 10%. Businesses, banks, and companies challenged the tax, citing retrospective application and concerns about double taxation. Despite objections, the Federal Shariat Court rejected all appeals and maintained the tax’s legality.
The case began in the Supreme Court in 2019 and later moved to a Constitutional Bench after the 26th Amendment. Following the 27th Amendment, it transferred to the Federal Shariat Court, where 17 hearings were conducted. In total, the super tax case underwent 71 hearings over several years before reaching this final verdict.
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Officials said the ruling will strengthen the government’s revenue collection and support national fiscal stability. Experts note the decision sets a legal precedent for future levy taxes and high-income taxation in Pakistan. The government now plans to implement the super tax fully, ensuring compliance from eligible taxpayers starting immediately.