Top court dismisses appeals against super tax

January 27, 2026 (MLN): Pakistan’s Federal Constitutional Court on Tuesday dismissed all appeals challenging the imposition of the super tax, restoring Section 4B of the Income Tax Ordinance and dealing a major blow to the business community.

The verdict is expected to generate over Rs300 billion for the federal government, according to the press release.

A three-judge bench headed by Chief Justice Ameen ud Din Khan, along with Justices Hassan Rizvi and Arshad Hussain Shah, declared a short order after concluding hearings in the long-running case.

The super tax, introduced in 2015, was aimed at supporting the rehabilitation of people affected by terrorism in Khyber Pakhtunkhwa.

It applied to individuals and entities earning annual profits above Rs300m at a 5% rate.

In 2022, the threshold was lowered to Rs150m, and the rate increased to a maximum of 10%.

The levy was challenged by business leaders, banks, and corporations on the grounds of retrospective application and double taxation. However, all high courts had previously upheld its legality.

The case first reached the Supreme Court in 2019 and was later transferred to the Federal Constitutional Court following the 26th and 27th constitutional amendments.

The court conducted 17 hearings before issuing its short order.

With the dismissal of all appeals, the super tax remains in force under Section 4B of the Income Tax Ordinance.

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