The government has withdrawn the powers of the Federal Board of Revenue (FBR) to target any elite person/individual to forcefully pay “additional tax on certain income, profits and gains” under Finance Act 2023.
The government has amended Finance Bill 2023 through the Finance Act 2023.
According to the Finance Act 2023, (99D. Additional tax on certain income, profits, and gains), Notwithstanding anything contained in this Ordinance or any other law for the time being in force, for any of the last three tax years preceding the tax year 2023 and onwards, in addition to any tax charged or chargeable, paid or payable under any of the provisions of this Ordinance, an additional tax shall be imposed on every person being a company who has any income, profit or gains that have arisen due to any economic factor or factors that resulted in windfall income, profits or gains.
The Federal Government may, by notification in the official Gazette,
Specify the sector or sectors, for which this section applies;
Determine windfall income, profits or gains and economic factor or factors including but not limited to international price fluctuation having bearing on any commodity price in Pakistan or any sector of the economy or difference in income, profit or gains on account of foreign currency fluctuation;
Provide the rate not exceeding 50 percent of such income, profits or gains;
Provide for the scope, time and payment of tax payable under this section in such manner and with such conditions as may be specified in the notification; and
Exempt any person or classes of persons, any income or classes of income from the application of this section, subject to any conditions as may be specified in the notification. The Federal Government shall place before the National Assembly the notification issued under this section within ninety days of the issuance of such notification or by the 30th day of June of the financial year, whichever is earlier.”; (10) in section 100B, in sub-section (1), after the word “thereon”, the words “including super tax under section 4C” shall be inserted; (11) in section 113, in sub-section (2), in clause (c), after the second proviso, the following new Explanation shall be added, namely:
Explanation
For the removal of doubt it is clarified that the aforesaid Part referred to in this clause means clause (1) of Division I or Division II of Part I of the First Schedule.”; (12) for section 134A, Finance Act added.
Source: Pro Pakistani