ISLAMABAD - Supreme Court of Pakistan on Monday dismissed the Federal Board of Revenue (FBR) appeals for recovery of 30 percent tax on bonuses received by corporate employees having taxable income of Rs1 million or more for raising funds for the internally displaced persons from Swat, Wana and Malakand division.
A three-member bench of the apex court headed by Chief Justice of Pakistan Justice Umar Ata Bandial and comprising Justice Qazi Faez Isa and Justice Syed Mansoor Ali Shah conducted hearing of the appeals of the FBR and the private individuals against the Sindh High Court judgment.
It was July 22, 2010 when the Sindh High Court (SHC) upheld the levy of 5 percent Internally Displaced Persons Tax (IDPT) and simultaneously struck down 30 percent tax on bonuses received by corporate employees having taxable income of Rs1 million or more. During the hearing, Justice Mansoor questioned that what was the justification to impose 30% tax on the bonuses of the corporate sector employees? He also asked that why there was discrimination to impose tax only on the income of corporate sector getting Rs1 million income?