Due to exogenous factors: Govt proposes powers to slap up to 50pc tax on ‘extraordinary gains’

ISLAMABAD: The FBR has proposed powers for imposing an additional tax on certain income, profit and gains in the budget. 

For imposing an additional tax on certain income, profits, and gains, it is proposed that notwithstanding anything contained in this Ordinance or any other law for the time being in force, for any of the preceding five tax years from the tax year 2023 and onwards, in addition to any tax charged, paid or payable under any of the provision of the Ordinance, an additional tax shall be imposed on every person who has any income, profit or gains that have arisen to any person or class of persons due to any economic factor or factors that resulted in an unexpected income, profits or gains whether or not disclosed in the financial statements.

The federal government may through a notification in the official Gazette – (a) determine economic factors or factors including but not limited to international price fluctuation having bearing on any commodity price in Pakistan or any sector of the economy or difference in income, profit or gains on account of foreign currency fluctuation; (b) provide the rate not exceeding fifty percent of such income, profits or gains; (c) provide for the scope, time and payment of tax payable under this section in such manner and with such conditions as may be specified; and (d) exempt any person or classes of persons, any income or classes of income from the application of this section, subject to any condition as may be specified.