Islamabad — The Federal Constitutional Court has upheld the levy of super tax under the Income Tax Ordinance, 2001, rejecting challenges raised by taxpayers against its enactment and constitutionality, according to an official statement issued by the Federal Board of Revenue (FBR).
The court dismissed petitions challenging Sections 4B and 4C of the Income Tax Ordinance, declaring the super tax levy constitutionally valid. The ruling is expected to enable the government to collect more than Rs200 billion in revenue for the national exchequer.
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Court examines key constitutional questions
The case involved several complex legal questions, including the legislature’s authority to enact laws with retrospective effect, the classification of taxpayers for the purpose of imposing super tax, the constitutional validity of the levy, and the maintainability of appeals filed by the FBR and tax commissioners.
After hearing detailed arguments, the Federal Constitutional Court ruled in favour of the FBR, thereby allowing the continued imposition and collection of super tax under the existing legal framework.
FBR defence and revenue impact
Ms Asma Hamid, Advocate Supreme Court, who served as lead counsel for the FBR, defended the case on behalf of the revenue authority. According to the statement, she successfully addressed objections raised by multiple senior lawyers representing the petitioners.
As a result of the ruling, the FBR is expected to collect more than Rs200 billion in super tax revenue by March 2026, strengthening the government’s fiscal position.
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