FBR starts recovery of Super tax on high earning persons

FBR has imposed “super tax” for tax year 2022 and onwards as per the following table:

S.No	Income under section 4C	Rate of Tax
1	Where income does not exceed Rs. 150 million	0% of the income
2	Where income exceeds Rs. 150 million but does not exceed Rs. 200 million	1% of the income
3	Where income exceeds Rs. 200 million but does not exceed Rs. 250 million	2% of the income
4	Where income exceeds Rs. 250 million but does not exceed Rs. 300 million	3% of the income
5	Where income exceeds Rs. 300 million	4% of the income

Income is 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 amount specified in clause (i);
(iii) imputable income as defined in clause (28A) of section 2 excluding amounts specified in clause (i); and
(iv) income computed, other than brought forward depreciation, brought forward amortization and brought forward business losses under Fourth, Fifth and Seventh Schedules.

Proviso’s :

1. Super tax shall not apply to banking company for tax year 2022
2. For tax year 2022 for persons engaged, whether partly or wholly, in the business of airlines, automobiles, beverages, cement, chemicals, cigarette and tobacco, fertilizer, iron and steel, LNG terminal, oil marketing, oil refining, petroleum and gas exploration and production, pharmaceuticals, sugar and textiles the rate of tax shall be 10% where the income exceeds Rs. 300 million:
3. Provided further that in case of banking companies for tax year 2023, the rate of tax shall be 10% where the income exceeds Rs. 300 million.