ISLAMABAD: The Federal Board of Revenue (FBR) on Thursday said that super tax will be applicable for tax year 2022 and onwards.
The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments made to Income Tax Ordinance, 2001 through Finance Act, 2022.
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The FBR said that a new section 4C to Income Tax Ordinance, 2001 has been introduced through Finance Act, 2022 and this section will apply for tax year 2022 and onwards.
Except for the persons whose income as envisaged in this section is below Rs150 million, all other persons including those assessed under Fourth, Fifth and Seventh Schedules to the Ordinance are liable to pay super tax on graduated rates ranging from 1% to 4% based on graduated income slabs provided in Division JIB of Part I of First Schedule given as under:
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| S. No. | Income under Section 4C | Rate of Tax |
| 1. | Where income does not exceed Rs150 million | 0% of the income |
| 2. | Where income exceeds Rs150 million 1% of the income but does not exceed Rs200 million | 1% of the income |
| 3. | Where income exceeds Rs200 million 2% of the income but does not exceed Rs250 million | 2% of the income |
| 4. | Where income exceeds Rs250 million but does not exceed Rs300 million | 3% of the income |
| 5. | Where income exceeds Rs300 million | 4% of the income |
However, for tax year 2022 the rate of super tax under this section will be 10% instead of 4%, where the income of the persons engaged, partly or wholly, in business of airlines, automobiles, beverages, cement, chemicals, cigarette & tobacco, fertilizer, iron & steel, LNG terminal, oil marketing, oil refining, petroleum & gas exploration and production, pharmaceuticals, sugar and textiles exceeds Rs.300 million. For tax year 2023, this super tax on income of banking companies will be 10% if the income for the year exceeds Rs. 300 million.
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For the purposes of this section, the income will be the sum of the following:
(i) Profit on debt, dividend, capital gains, brokerage, and commission;
(ii) Taxable income (other than brought forward depreciation and brought forward business losses) under section 9 of the Ordinance, excluding amounts specified in (i) above;
(iii) Imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause (i) above; and
(iv) Income computed, other than brought forward depreciation, brought forward amortization and brought forward business losses under Fourth, Fifth and Seventh Schedule.
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Super tax payable under this section will be paid on the date and manner as specified in under section 137(1) of the Ordinance.
In case of default by the person liable to pay super tax under this section, Commissioner through an order in writing will determine the liability of the person and proceed to recover the same under applicable provisions of the Ordinance, the FBR added.
