Super tax is made permanent beyond the tax year 2021

ISLAMABAD: The levy of super tax has been made permanent for banking companies beyond tax year 2021, sources in Federal Board of Revenue (FBR) said on Monday.
Tax Laws (Amendment) Ordinance, 2021 has been promulgated on February 12, 2021 after approval by the President of Pakistan. As per the ordinance the levy of super tax on banks shall continue beyond Tax Year 2021. Through the ordinance the levy shall apply in tax year 2021 and onwards.
With this amendment the banks shall pay the super tax at four percent in subsequent tax years. For the banking companies the tax year 2022 has commenced from January 01, 2021.
The one-time super tax was imposed by inserting Section 4B of Income Tax Ordinance,
2001 through Finance Act, 2015.
In tax year 2018 the rate of super tax was four percent for banking companies on percentage of income and three percent on person other than a banking company, having income equal to or exceeding Rs500 million. In tax year 2020 the tax rate at 4 percent was maintained for banking companies. However, in other cases it was abolished. With the new amendment, the banking companies shall continue to pay the super tax with no timeframe. – TLTP

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