Islamabad, March 22, 2025 – A division bench of the Islamabad High Court (IHC) has directed the transfer of all pending cases challenging the super tax under Sections 4B and 4C of the Income Tax Ordinance, 2001, to the Supreme Court of Pakistan.
This decision follows the Supreme Court’s orders to consolidate all related matters for a unified ruling on the super tax issue.
In its order dated March 18, 2025, the IHC stated that all identical super tax cases currently pending before the Lahore High Court (LHC) and IHC should be transferred to the Supreme Court of Pakistan. The IHC also issued a comprehensive list of petitions that have now been referred to the country’s highest judicial authority.
The Supreme Court took this step for the first time by exercising its constitutional authority to transfer all intra-court appeals (ICAs) related to the super tax from the high courts of Lahore and Islamabad.
This action was taken under Article 186(A), which was introduced into the Constitution following the 26th Amendment last year. The provision empowers the Supreme Court to move cases from high courts “in the interest of justice.”
As a result of this transfer, all appeals concerning the super tax, which were previously under review by different high courts, will now be heard directly by the Supreme Court.
The registrars of the respective high courts have been directed to send the original case files to the apex court to facilitate proceedings.
The set of petitions under review primarily challenge the super tax, initially imposed in 2015, targeting individuals and corporations earning above Rs 500 million. The tax was introduced with the stated purpose of funding national rehabilitation efforts. However, it has faced significant legal scrutiny, with many taxpayers questioning its legality and long-term applicability.
The IHC’s decision marks a crucial step in resolving the ongoing legal battle surrounding the super tax, as the Supreme Court will now deliver a definitive ruling that will impact businesses and high-income individuals across Pakistan.