The Federal Board of Revenue has recovered Rs23 billion from 16 banks as part of the windfall tax collection under Section 99D (additional tax on certain income, profits and gains) of the Income Tax Ordinance 2001, Business Recorder reported.

The Sindh High Court dismissed petitions that challenged the legality of Section 99D and the related SRO 1588 (I) of 2023 concerning the windfall tax. After the SHC’s ruling, the government confirmed its intention to continue collecting the windfall tax from banks.

The FBR managed to recover the full amount “in just one day from such banks” under the provisions of Section 99D.

According to the SHC’s order, the petitions questioned the validity of Section 99D and the associated SRO 1588(I) dated November 21, 2023. The court stated that such petitions, along with all pending applications, have been dismissed for reasons to be recorded.

In the recent past, FBR Chairman Rashid Mahmood Langrial said that banks deposited Rs72 billion to the FBR by December 31, 2024, following the introduction of the Income Tax (Amendment) Ordinance, 2024, which revised the Advance Deposit Ratio for banks.