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The Federal Constitutional Court has issued an important ruling in favour of corporate taxpayers. The court has declared the adjustment of tax credits against super tax legally valid. It has also overturned an earlier decision of the Islamabad High Court. Justice Amir Farooq authored the six-page detailed judgment. The court accepted the appeals filed by a private mobile phone company. The case relates to the adjustment of tax credits against super tax. The company had challenged a demand raised by the Federal Board of Revenue (FBR). The FBR had issued a notice to the private company. The notice required the company to pay super tax. The company approached the Islamabad High Court after receiving the notice. It argued that its available tax credit should be allowed to adjust against the super tax liability. The Islamabad High Court rejected the company’s petition. The company then challenged that decision before the Federal Constitutional Court. The Federal Constitutional Court has now accepted the company’s appeals. It has declared that tax credits available to a taxpayer can be adjusted against super tax. The court referred to the relevant provisions of the tax law. It observed that the tax credit available under Section 168 is a separate and legally recognised right. According to the judgment, a taxpayer should not be prevented from using this credit for adjustment. The court said forcing a taxpayer to seek only a refund would not be consistent with the intention of the law. The judgment also addressed the interpretation of financial and tax laws. The court observed that such laws should be interpreted in a manner that facilitates taxpayers. The court emphasised that taxpayers should be able to exercise rights provided to them under the law. A legal right to a tax credit cannot be unnecessarily restricted through an interpretation that creates additional difficulties for taxpayers. The court also issued directions to the FBR. The FBR has been directed to examine the taxpayer’s claim for adjustment. The department must consider the claim in response to the tax notice. The FBR will now have to decide the matter according to the applicable law and the court’s ruling. The judgment provides an important clarification for corporate taxpayers. It establishes that an eligible tax credit can be considered for adjustment against a super tax liability. The ruling may also have wider implications for companies facing similar tax demands. Businesses with legally available tax credits may now rely on the court’s interpretation when seeking adjustments against their tax liabilities. By setting aside the Islamabad High Court’s decision, the Federal Constitutional Court has clarified the legal position on the issue. The case also highlights the continuing dispute between taxpayers and the FBR over the interpretation and application of tax laws.

President Asif Ali Zardari has stressed the need to protect trees and promote plantation across Pakistan. He said tree plantation is not only an environmental priority but also a national responsibility. In a message issued at the launch of the Monsoon Tree Plantation Campaign 2026, the president said the campaign aims to plant 20 million saplings across the country. He urged people and relevant institutions to actively participate in the plantation drive. He said increasing the country’s tree cover is essential for protecting the environment and improving the quality of life. President Zardari said forests play an important role in preserving biodiversity, water resources and the natural environment. Forests also help reduce the harmful effects of climate change. He stressed that Pakistan needs greater efforts to protect existing forests and increase the number of trees across the country. According to him, a stronger and healthier forest cover can help the country deal with rising environmental challenges. The president called for collective efforts to build a green, clean and climate-resilient Pakistan. He said government institutions, communities and citizens all have a role to play in protecting the environment. He also highlighted the importance of planting trees for future generations. He said the trees planted today will help provide a healthier and better environment for coming generations. The president’s message comes as Pakistan continues to face environmental challenges linked to climate change, changing weather patterns and pressure on natural resources. He said tree plantation should not be limited to seasonal campaigns. Continuous efforts are needed to protect trees, expand forests and ensure the survival of newly planted saplings. President Zardari said protecting the environment is a shared responsibility. He called for greater public awareness and participation in plantation activities to make Pakistan greener and more sustainable.