A. Background (BG)

1. This refers to the related Important QCs in trail, blue, italic and double Line (a) 3131 of 21.5.25 about Super Tax u/s 4B: FBR concluded; Taxpayers' Rejoinder & AAG 3 cases on 22.5.25 (b) 2776 of 6.6.24 about Super Tax 4C TY 2022 ultra vires by SB LHC and KCV & Recommendation (c) 2554 of 28.11.23 about FBR & Taxpayers filed ICAs against LHC Single Bench (SB) 4C order; hearing on 5.12.23

2.   We also refer to several Other TLQC including (a) 3126 of 16.5.25 about Super Tax u/s 4B: FBR & AAG argued – Next on 19.5.25 (b) 3114 of 6.5.25 about Super Tax 4B Constitutional Tax VS Fee issue – Department could not counter ague on 4.5.25 (c) 3117 of 12.5.25 about Super Tax u/s 4B Department facing issues in 2+ Hearings at SCP – Next on 13.5.25 (d) 2420 of 30.4.24 about 4C IHC 3rd ICA / CM Interim Order in Sindh, etc Taxpayers’ favour & KCV (e) 2247 of 2.3.23 about Comparison of Super Tax Supreme Court Interim orders & Way Forward

3. You may recall that Supreme Court adjourns Super Tax Case hearing until May 27 (Attachment 3267.1). As per reliable sources, there was no proceeding from then in May till 7 September 2025 and from 8 September hearings, we will be covering below and in upcoming TLQCs

B. Updated Commentary

1. Further to matters in BG & KQU 3549 of 10.9.25, being an important matter, we would inform you about FBR to SC: No taxpayer challenged LHC tax ruling (Attachment 3267.2) in the ensuing paragraph, with emphasis in bold & Underline for quick reading.

2. A five-member constitutional bench (CB) headed by Justice Aminuddin Khan took up on 8.9.25 a case pertaining to the imposition of Super Tax.

3. FBR's counsel Ms Asma Hamid began with opening arguments. She apprised the court that no taxpayer had challenged the LHC's verdict, upholding the legality of the super tax imposed u/s 4C of the ITO, 2001, while reducing its rate for several industries.

4. She added that the IHC had already issued rulings on both sections of the matter, noting that 89 petitioners had filed applications in the IHC in 2022.

5. A three-judge bench of the LHC led by Justice Mr Jawwad Hassan had dismissed petitions challenging the constitutionality of the levy and ruled that the government has the authority to impose such a tax under the Finance Act 2022. However, the court reduced the Super Tax rate from 10% to 4% for 16 sectors, including banking, offering partial relief to petitioners.

6. You may recall that the Super Tax is inter alia an additional levy on high-earning individuals, companies, and industries, largely aimed at big corporations. In the 2022-23 federal budget, the government imposed up to 10% Super Tax on major sectors including cement, steel, sugar, oil and gas, fertiliser, banks, textiles and others, citing the need to raise extra revenue for economic stabilisation.

7. During the hearing, Justice Mr Muhammad Ali Mazhar questioned what the common factor was in all judicial decisions and sought a brief summary of all rulings be submitted before the court.

8. The bench adjourned the hearing and next hearings will be covered in the upcoming TLQCs.

C. Kasbati & Co Views & Recommendations

Considering our TLQC 2776 of 6.6.24 (in trail), it is evident that in case of Services Global Footwear Limited, etc VS FoP, etc - ICA 48745 of 2023 (Attachment 2776.1) appeals by appellants / taxpayers at (Appendix A for Attachment 2776.1) are allowed in taxpayers favour. The part of the impugned judgment that upheld the retrospective application of section 4C “for the tax year 2022” is set-aside decided in Taxpayers favor. It is declared that, notwithstanding these words, the rights conferred on the appellants at the end of tax year 2022 on 30.6.22 are past and closed transactions and cannot be impaired or whittled away by the use of these words. Hence, Super tax under Section 4C cannot be imposed on these appellants for the tax year 2022. This includes appellants with Special tax year as well. ICA No.47905 of 2023 and connected appeals filed by the FBR / Department (Appendix B for Attachment 2776.1) are dismissed.

Hence, it appears that the reporting as to Mr Asma Hamid in para C as to No Taxpayer challenged LHC Ruling effectively means that as  the order is fully in Taxpayers' favor, hence, no taxpayer appeal against LHC ruling was simply out of question.

We recommend that all Appellants and other having Super Tax 0% to 10% Super tax issue is recommended to contact their Legal Counsel about the above (and further updates, if your are the Kasbati DNVC or Quick Update or Quick Commentary Subscribers and having multiplication para D 

D. Multiplication

Although all the Commentaries are to the extent of the Subscribed IDs only, however, your Goodself is allowed to share this QC for the Noble Cause to Impart Knowledge.

E. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.