The Federal Constitutional Court (FCC) has dismissed more than 395 review petitions challenging its earlier judgment dated January 27, 2026, which upheld the constitutional validity of Super Tax under Sections 4B and 4C of the Income Tax Ordinance, 2001. The Court held that no error apparent on the face of the record, material omission or jurisdictional infirmity had been established to justify reconsideration. Consequently, the earlier judgment, together with its directions, remains operative.
The FCC reaffirmed its earlier findings concerning Parliament’s legislative competence, retrospective application of Section 4C, differential tax rates and constitutional equality under Article 25. The Court also maintained its interpretation concerning capital gains and income subject to separate or final taxation regimes. Importantly, it clarified that review jurisdiction cannot be used as a substitute for an appeal merely because taxpayers disagree with the Court’s earlier conclusions.
The dismissal has significant implications for companies and other taxpayers with outstanding Super Tax exposures, pending assessments and related litigation. Taxpayers should revisit their positions for the relevant tax years, examine the application of statutory exemptions and protections, and assess the implications for outstanding liabilities, recovery proceedings and financial reporting. The Court also recognized that individual assessment and implementation questions must be determined in accordance with the applicable law.