ISLAMABAD: The Federal Board of Revenue (FBR) has recovered Rs 23 billion from 16 banks on account of windfall tax under Section 99D of the Income Tax Ordinance 2001.
The Sindh High Court (SHC) has dismissed the petitions challenging the levy of Section 99D of the Income Tax Ordinance 2001 and the SRO 1588 (I) of 2023 relating to the imposition of windfall tax. After the order of the SHC, the government has maintained its decision to collect the windfall tax from banks.
The FBR has recovered the said amount in a single day from banks under Section 99D of the Income Tax Ordinance 2001.
According to the SHC’s order, these petitions challenged the vires of Section 99D of the Income Tax Ordinance 2001 and the corollary SRO 1588(I) of 2023 dated 21.11.2023; pertinent to the imposition of windfall tax. For reasons to be recorded, these petitions, along with all pending applications, are hereby dismissed, the SHC’s order added.
Recently, FBR Chairman Rashid Mahmood Langrial stated that banks have deposited Rs72 billion by December 31, 2024 to the FBR after promulgation of Income Tax (Amendment) Ordinance, 2024 which brought changes in Advance Deposit Ratio (ADR) of banks.
FBR Chairman had informed the Senate Standing Committee on Finance that all issues between the banks and tax department have been resolved through the said Ordinance. In the past, banks have gone into litigation against the FBR on the issue of Advance Deposit Ratio (ADR).
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