A.   BACKGROUND

This refers to the following Important TLQCs about section 4C matters: in trail, blue, italic and after double line (a) 3272 of 17.9.25 about 4C Super Tax: FBR defends Retrospective taxes & over 4% tax and SCP Counter arguments (b) 3270 of 16.9.25 about 4B & 4C Super Tax: SCP sought Summary of all HC decisions (c) 3267 of 15.9.25 about 4C Super Tax= As per FBR at SCP, No Taxpayer challenged LHC Tax order and KC Views & Recommendations (d) 3131 of 21.5.25 about Super Tax u/s 4B: FBR concluded; Taxpayers' Rejoinder & AAG 3 cases on 22.5.25 

2.   We also refer to several Other TLQC including (a) 2776 of 6.6.24 about Super Tax 4C TY 2022 ultra vires by SB LHC and KCV & Recommendation (b) 2554 of 28.11.23 about FBR & Taxpayers filed ICAs against LHC Single Bench (SB) 4C order; hearing on 5.12.23 (c) 3126 of 16.5.25 about Super Tax u/s 4B: FBR & AAG argued – Next on 19.5.25 (d) 3114 of 6.5.25 about Super Tax 4B Constitutional Tax VS Fee issue – Department could not counter ague on 4.5.25 (e) 3117 of 12.5.25 about Super Tax u/s 4B Department facing issues in 2+ Hearings at SCP – Next on 13.5.25 (f) 2420 of 30.4.24 about 4C IHC 3rd ICA / CM Interim Order in Sindh, etc Taxpayers’ favour & KCV (g) 2247 of 2.3.23 about Comparison of Super Tax Supreme Court Interim orders & Way Forward

B. Updated Commentary

1. Further to matters in BG & KQU 3555 of 15.9.25, being an important matter, we would inform you about FBR tells SC: Chambers, CAs consulted before inserting Sec 4C in tax law (Attachment 3273.1) in the ensuing paragraph, in Italic with emphasis in bold & Underline, heading ours for quick reading.

2. The FBR told the SCP that it consulted the Chambers of Commerce (COC) and Chartered Accountants (CA) before inserting Section 4C in the ITO vide FA, 2022.

3. A five-judge larger Constitutional Bench, headed by Justice Amin-ud-Din Khan, on 11.9.25 heard the appeals of the Federal Board of Revenue and the industries against the judgments of the Sindh, Lahore, and Islamabad High Courts regarding the levy of Super Tax u/s 4C.

5. Member (Legal) FBR Mr Badshah Khan Wazir, who was present in the Court, informed that after consulting the representatives of chambers of commerce from Islamabad, Lahore, Karachi, and Sialkot, and the chartered accountants, the proposal was prepared for the levy of Super Tax.

6. Member (Legal) was responding to the query raised by Justice Mr Hassan Azhar Rizvi, who asked whether the FBR held any meeting with the representatives of the Chambers of Commerce, and took suggestions/input from the financial experts on Super Tax?

7. Ms Asma Hamid, FBR lead counsel, told the bench that the Finance Minister, in his speech (TLQC1890 of 10.6.22), had referred to these consultations and the windfall profit earned by certain sectors (KC: for CA, CoC & certain section, actual status, please refers to para C).

8. Justice Jamal Khan Mandokhel questioned whether there was any discussion held in the Parliament on the issue of discrimination against different sectors.

9. Asma replied that discrimination was discussed in the Parliament. She submitted that the Finance Minister, in his speech, had proposed that on the basis of economic need and windfall profit, a 10 percent Super Tax be levied on high-earning persons, adding that this news was reported in all the major newspapers.

C. Kasbati & Co Views as to Budget Speech for FA 2022

1. Extract -Page 39

Owing to FBR Representative Ms Asma Hamid remarks, we tried to  find the relevant matters in Budget Speech (Attachment 3273.2), which are reproduced below in Italics.

1.1      (xi) Tax on windfall profits

The banking sector has earned windfall gains due to higher interest rates and risk-free investment in Government securities. In order to capture the real tax potential, the tax rate on banking companies is proposed to be enhanced to 45% from the current 39% inclusive of super tax.

1.2 Super Tax on 15-20 sectors page 39 extract the e Budget Speech

Provided that 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:

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.

2. KC Views & Recommendations

As per Budget Speech (Attachment 3273.2), it is evident that there is no reference of Chartered Accountant and Chambers of Commerce consultatio with regard to Super Tax in the Budget Speech document on relevant website.

Moreover, there is no mention as to windfall profit of 15-20 sectors (expect bank in the above extract) viz 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, as evident from extract.

We recommend that this TLQC & earlier TLQCs be forwarded to your Legal Counsel to who investigate further and rebut the matters in Para B 

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.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)