Written by Shahnawaz Akhter EY Ford Rhodes partner calls for corporate tax reforms to improve investment climate Haider Ali Patel on Thursday urged the government to introduce a sunset clause in Section 4C of the Income Tax Ordinance, 2001, to define a clear end date for the levy of super tax in Pakistan. Speaking at a two-day seminar hosted by the Karachi Tax Bar Association, Patel said the super tax was disproportionately burdening sectors that were already contributing significantly to the tax system. He noted that the super tax, imposed at rates ranging from 4% to 10%, is charged in addition to corporate tax on documented sectors and is primarily borne by transparent, audited, and listed companies. Patel said the levy was introduced retrospectively through the Finance Act 2022 and largely affected the documented corporate sector. Although the Federal Constitutional Court upheld the tax, including its retrospective application, as legally valid, he argued that “legal validity does not equal economic wisdom.” According to Patel, the super tax discourages investment by penalizing companies that create jobs, pay taxes, and maintain financial transparency. He warned that foreign investors remain cautious while domestic businesses…