In a significant ruling, the Lahore High Court on Tuesday upheld the legality of the super tax that was imposed by the federal government last year, Express News reported.

The court’s decision comes in response to several petitions filed against the tax’s enforcement.

According to Express News, over 350 petitioners approached the court following the implementation of the super tax by the government in the year 2022.

Justice Jawad Hassan of the Lahore High Court had reserved judgement on the petitions on April 12 and pronounced it today. In his ruling, Justice Jawad Hassan affirmed the legality of the super tax. However, the court reduced the rate of the super tax from 10 percent to 4 percent on 16 sectors, including banking.

Also read: 10% super tax to stay in upcoming fiscal year

The petitions were opposed by representatives of the federal government and the Federal Board of Revenue (FBR).

The petitioners argued that the super tax was enforced under section 4C of the Income Tax Ordinance in the Finance Act 2022. They contended that the super tax could not be applied retrospectively to the year 2022, and that its imposition for the previous period was an unlawful act. They had requested the court to declare the enforcement of the super tax null and void. 

It should be noted that just like the previous year, a few days ago, the government has announced the imposition of the super tax for the year 2023 as well.