FBR starts super tax recovery drive

Rs327b to be collected from large firms after court ruling; oil and gas companies' share put at Rs90b

ISLAMABAD:

The Federal Board of Revenue (FBR) has begun taking steps to recover super tax from large companies to implement the decision of the Federal Constitutional Court in the super tax case. Following the court's ruling, the FBR has initiated contacts with major companies for the recovery of super tax.

Sources in the FBR said that, in line with the court's decision, revenue of over Rs300 billion is expected to be collected from large companies. Officials stated that after the Federal Constitutional Court's ruling, the FBR is required to collect Rs327 billion under the head of super tax. Of this amount, around Rs90 billion is to be recovered from oil and gas exploration companies alone, as these firms are already paying taxes in the range of 44% to 55%.

The sources added that, under the law, no additional tax beyond this level can be imposed on these companies. According to FBR officials, contact has already been initiated with large companies to recover around Rs100 billion over the next few months. The sources further said that the International Monetary Fund (IMF) has also been informed about the constitutional court's decision on the super tax issue and the steps being taken by the tax authority to implement the ruling.