Super Tax stands; Federal Constitutional Court rejects objections

ISLAMABAD: The Federal Constitutional Court on Tuesday announced the verdict in the super tax case, rejecting objections raised against the levy and upholding the legal framework under which it was imposed.

A bench headed by Chief Justice Aminuddin read out the decision in open court, ruling that the objections lacked merit. The court maintained the validity of Section 4B of the Income Tax Ordinance, affirming its application with effect from 2015.

The verdict follows detailed arguments heard over multiple hearings over past several months, during which petitioners challenged the super tax as excessive and disproportionate. Counsel for a private company had argued that the tax effectively penalised businesses by being levied on total income rather than actual profits, particularly affecting firms dependent on bank financing.

During the hearing, the petitioner’s lawyer contended that companies were required to pay super tax on gross income even when their net profits were significantly lower, resulting in what he described as an unsustainable tax burden that discouraged investment. The court, however, appeared unconvinced by these arguments while reserving its decision.

In Tuesday’s ruling, the court dismissed the objections on merit, siding with the state’s position and effectively endorsing the continuation of the super tax regime.