The Islamabad High Court (IHC) has dismissed a petition filed by challenging the imposition of the super tax, effectively upholding the levy of approximately Rs. 11 billion against the bank.
In its decision, the court maintained that Parliament holds the constitutional authority to introduce and enforce taxation measures, including the super tax imposed under Section 4C of the Income Tax Ordinance.
The IHC rejected Meezan Bank’s argument that the levy amounted to double taxation or created an unfair burden on Islamic banking institutions and their financing structures.
The court observed that tax obligations are determined on the basis of income earned during the relevant tax year and that the existing legal framework does not provide a separate tax treatment for Islamic and conventional banks.
It further noted that both sectors operate within the same taxation system and are subject to the same principles of income assessment.
The ruling reinforces the government’s position regarding the applicability of the super tax and clarifies that Islamic financial institutions cannot claim exemption from generally applicable tax provisions unless specifically provided by law.
The decision marks an important development in the ongoing discussion around taxation policies, banking regulations, and the treatment of different financial models in Pakistan.
