FBR to Recover Rs217 Billion Super Tax Arrears Through Instalments – Latest Tax Update 2026

Super Tax Recovery
The Federal Board of Revenue (FBR) Chairman, Rashid Mahmood Langrial, announced on February 4, 2026, that the government is prepared to recover approximately Rs217 billion in super tax arrears through instalments on a case-by-case basis. This decision serves as major relief for the corporate sector following concerns that aggressive, abrupt recovery measures were creating liquidity challenges and potential business closures.

Key Details of the Recovery Plan

Total Arrears: The FBR clarified that the total recoverable amount is Rs217 billion, correcting previous speculations of Rs300 billion.

Case-by-Case Basis: Recoveries will be tailored to the specific financial situation of individual businesses and trade entities to ensure they remain operational.

Implementation Strategy: Instructions have already been issued to field formations to facilitate taxpayers and avoid coercive actions that could lead to market panic.

Current Progress: As of early February 2026, the FBR has already successfully recovered Rs70 billion in super tax.

Context and Legal Status

The recovery drive follows a landmark ruling by the Federal Constitutional Court on January 26, 2026, which upheld the constitutionality of the super tax (Section 4C of the Income Tax Ordinance, 2001). The tax is a progressive levy targeting high-income individuals and companies with annual incomes exceeding Rs150 million.

This shift toward an instalment-based model comes as Pakistan prepares for the third review of its International Monetary Fund (IMF) bailout program later this month. While Finance Minister Muhammad Aurangzeb noted that the super tax is not directly linked to IMF conditions, he emphasized that a sustainable tax-to-GDP ratio is critical for long-term economic stability.

For further official guidance, businesses can monitor updates via the https://incometaxcalculation.pk website.