Islamabad
The Federal Board of Revenue (FBR) has collected around Rs19 billion from all rich individuals and companies in shape of super tax along with tax returns who have earned over Rs500 million per annum.
The super tax was slapped for the rehabilitation and reconstruction of Temporarily Displaced Persons in the aftermath of military offensive Zarb-e-Azb launched against militants in North Waziristan Agency (NWA) and other places of the country. The government had already utilised more than $2.6 billion for reconstruction of TDPs and more resources will be required in years ahead to accomplish this gigantic and important task.
Despite stay order granted by Sindh High Court in one specific case, the FBR has collected more than Rs19 billion along with received income tax returns till end December 2016. “Yes, the FBR has collected around Rs19 billion in shape of super tax along with income tax returns during first half of the current fiscal year 2016-17 against Rs14 billion collection in the same period of the last financial year,” FBR spokesman Dr Iqbal confirmed to The News when contacted him on Monday.
It is relevant to mention here that one company had approached Sindh High Court against imposition of super tax and sought stay order. The counsel of the company had argued that this tax does come within the domain of the federal legislation as social welfare contribution is now provincial subject after 18th Constitutional Amendment. The SHC granted stay order on December 19, 2016.
However, FBR’s top guns told The News that one specific company obtained stay orders but the FBR managed to pursue companies and individuals having earning of more than Rs500 million to pay their due share in shape of super tax before this stay order and collected around Rs19 billion from this head during the current fiscal year.
No credit of brought forward losses shall be allowed for computing Super Tax applicable on income of individuals, AoPs and companies.
The preceding tax years assessed losses have been carried forward and set off against the income of the succeeding tax years under the Income Tax Ordinance, 2001. However, Super Tax would be applicable this year’s income without giving effect of brought forward losses. The individuals, association of persons (AoPs) and companies earning income above Rs500 million had paid super tax along with the income tax return for tax year 2016.