ISLAMABAD – The Federal Board of Revenue (FBR) would likely to recommend the government to continue with the super tax for next fiscal year -a tax imposed for the rehabilitations of temporarily displace persons (TDPs) of the operation Zarb-e-Azb.
“We will recommend the government to continue with super tax for another year. However, the prime minister will take the final decision on it,” said an official of the FBR.
He further said “the government generates around Rs40 billion every year through the super tax.” The government was still spending billion of rupees on TDPs and security enhancement every year, therefore the super tax should be retained for another year, he said. The FBR would brief the Prime Minister Shahid Khaqan Abbasi on budget proposals in next week, he added.
The government in budget 2015-16 had imposed one-time super tax on earning above Rs500 million in a year for the rehabilitation of temporarily displace persons (TDPs) of the operation Zarb-e-Azb. The government had imposed a temporary 4 per cent super tax on all banks and 3 per cent on other companies and individuals with an annual income of over Rs500 million.
However, the government had continued the super tax for last three years despite strong resistance from the foreign investors working in Pakistan.
The government had allocated Rs90 billion for the rehabilitation of TDPs and security enhancement for the outgoing fiscal year. The government claimed that revenue generated from the super tax majorly spent on the TDPs and security enhancement.
The Overseas Investors Chamber of Commerce and Industry (OICCI) has recently asked the government to withdraw 3-4 percent super tax imposed some three to four years back to help the Internally Displaced Person.