In a significant move, the Federal Board of Revenue (FBR) SRO 1588(1)/2023 imposing banks to pay an extra 40% tax on windfall profits, has been halted by the Islamabad High Court (IHC).
Justice Sardar Ejaz Khan issued a written decision on Wednesday, stating that more investigation into the taxes problem was required.
Additionally, the FBR and the Pakistani Attorney General have received letters from the IHC requesting comments by December 8, 2023.
In reply to a plea against the extra tax submitted by Askari Bank, the court stated that the caretaker administration may not have authority over matters pertaining to taxes.
The petitioner’s attorney claims that the National Assembly ought to have received notice of the extra tax. As a result, until the next hearing, which is set for December 8, the 40% extra tax on windfall income will not be implemented.
The federal cabinet had already approved a 40% tax on banks’ unusual gains, mainly from foreign exchange trades, in 2021 and 2022.
FBR sets deadline to collect 40pc tax from banks on windfall income, profits
