Islamabad, February 23, 2025: The Pakistan government has successfully collected Rs23 billion in windfall tax from 16 banks in a single day, following a recent court ruling, the Finance Division announced on Sunday.
The development comes after the Sindh High Court (SHC) dismissed petitions challenging Section 99D of the Income Tax Ordinance 2001 and SRO 1588(I) of 2023, which impose a windfall tax on excessive profits.
“After the SHC’s order, the Federal Board of Revenue (FBR) successfully recovered this amount in a single day under Section 99D of the Income Tax Ordinance 2001,” the Finance Division’s statement said.
As per Section 99D, the tax applies retroactively for up to three tax years preceding 2023 and beyond. The law mandates that companies generating extraordinary profits due to economic factors must pay an additional tax on their windfall gains.
The Finance Division emphasized that the government is committed to maintaining a fair and equitable tax system without placing additional burden on the common man.
“This milestone reflects the strong leadership of Prime Minister Shehbaz Sharif, the proactive policies of the finance minister, and the FBR’s efforts to implement a just taxation system,” the statement read.
The Attorney General of Pakistan, State Bank of Pakistan, FBR chairman, and legal teams played a crucial role in ensuring the successful enforcement of the tax.Targeting Economic Inequality
The statement further highlighted that elite institutions have historically exploited economic irregularities to amass extraordinary profits, shifting the tax burden disproportionately onto lower-income groups.
