The federal government plans to abolish the super tax in phases, Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial announced on Wednesday.
Addressing members of the Korangi Association of Trade and Industry (Kati), Langrial said the super tax rate has already been cut by two percentage points and work on its gradual elimination has begun.
He said the FBR aims to improve the tax system and facilitate the business community. As part of this effort, the board will establish an office at Kati to address tax-related issues faced by industrialists in the Korangi Industrial Area.
The FBR will also consult relevant stakeholders to address shortcomings in the raw material import system. The scope of its help desk will be extended from Karachi to Sukkur.
According to a Kati press release, Langrial said meetings would be held to resolve border trade issues affecting the leather industry. He also spoke of adopting a model similar to that of the Drug Regulatory Authority of Pakistan (DRAP) for the pharmaceutical sector to make the Track and Trace System more effective.
The FBR chairman urged industrialists and the wider business community to cooperate with the board in identifying and eliminating tax evasion, so that the tax system becomes more transparent and effective.
Earlier, Kati President Sheikh Umer Rehan proposed a joint committee to ensure prompt resolution of industrialists’ tax-related issues and to strengthen institutional coordination.
Earlier this week, the Federal Constitutional Court (FCC) reserved its decision on petitions seeking review of its January 27 ruling upholding the Super Tax. The three-member bench, led by Chief Justice Aminuddin Khan, heard challenges filed by companies and the Defence Housing Authority, Lahore.
The earlier judgment held that Parliament could impose or amend the tax through a Finance Act and upheld Sections 4B and 4C of the Income Tax Ordinance, 2001. Introduced in 2015, Super Tax applies to taxpayers earning over Rs500 million, at 4 percent for banks and 3 percent for other sectors.
