Overview
- The three-judge bench issued a nearly 300-page judgment that validates Sections 4B and 4C as taxes on income under the Constitution’s Entry 47.
- The court set aside High Court rulings that struck down or “read down” Section 4C and said judges cannot rewrite fiscal policy or reset tax slabs, rates, or thresholds.
- It confirmed that Section 4B applies from 2015 and Section 4C applies from 2022 and ruled there is no retrospectivity or double taxation under Section 4C.
- The judgment excludes super tax on capital gains that are already tax-exempt and requires Benevolent and Provident Funds to present exemption certificates to claim relief.
- FBR officials report Rs290 billion collected from the super tax in the first nine months of the fiscal year and say the take could reach about Rs315 billion by June 2026.