KARACHI: Federal government, through the Finance Bill 2016, has extended Super tax as applicable for tax year 2015 to tax year 2016 also.
Through Finance Act, 2015, Super tax was imposed on banking companies and other taxpayers having income of Rs500 million or above, at the rate of 4.0 percent and 3.0 percent respectively for tax year 2015 only.
The said levy is proposed to be extended to tax year 2016 also.
Contrary to the scheme of law, the Federal Board of Revenue (FBR) stated in a circular that such levy shall be calculated on the income without taking the effect of brought forward business and depreciation losses.
This matter was, therefore, challenged and is currently subjudice in the High Court.