I. Background

(1) This refers to the related Important TLQC 3444 of 25.2.26 about Super Tax u/s 4C: Misapplication & Premature Recovery leading to Severe Hardship - LTBA letter in trail, blue, italic and double Line (2) For List of other relevant QCs, please refer to Para IV.

II. Kasbati & Co Views and Recommendations

When the Court stays the payment, the FBR plans (as per para III) to collect Delayed Payments Surcharge is likely to land into the Court; as we feel that the matter can successfully won in the Court, as we recall certain Case-laws in this regard

Hence, FBR should ensure its legal position before taking any action. Consequently, we are sharing this Commentary to FBR too

Moreover, taxpayers should be ready to face the Notice and be well prepared with there Internal legal team / Legal or Tax counsel / ourself via email, sharing the Notice as soon as received. We are sharing this email to leading lawyers too 

III. Details

1. Further to KQU 3823 of 16.3.26 being an Important matter, we would inform you about Ms Mawadat Fatima Article from Bloom Pakistan about FBR to Recover Rs.100 Billion Super Tax Surcharge from Firms (Attachment 3456.1) & Govt has decided to collect delayed surcharge on super tax (Attachment 3456.2) in the ensuing paragraph, in Italic with emphasis in bold & Underline, heading ours for quick reading.

2. Pakistan plans to recover over Rs.100 billion in late payment Surcharge from companies that challenged the super tax in courts and did not pay on time, government sources said.

3. The move comes as the FBR informs the IMF during ongoing negotiations to meet the current fiscal year’s tax targets.

4. The surcharge, linked to the 22% KIBOR, could reach 25% of annual tax liability in some cases. The funds relate to the 2015 and 2022 super taxes, originally imposed for displaced persons and IMF-related revenue targets. FBR officials estimate potential earnings between Rs 100 billion and Rs 150 billion, though the exact amount remains uncertain.

5. U/s 205 of ITO, the FBR is empowered to collect late payment surcharges on unpaid taxes, penalties, or other amounts. The law calculates interest from the tax due date to the payment date, using a rate of 12% or KIBOR plus 3% per annum, whichever is higher.

6. The SCP has previously ruled that the Surcharge is mandatory, where court decisions go against taxpayers.

7. The super tax, levied at 4–10% on high-earning individuals and companies, was upheld as constitutional by the FCCP in January.

8. The FCCP confirmed that Parliament has exclusive authority to set tax rates, and the levy covers sectors including banking, cement, and energy. Following the ruling, FBR collected around Rs 150 billion in outstanding super tax dues.

9. FBR Chairman Mr Rashid Langrial told a Parliamentary Committee last month that the super tax had generated about Rs 216 billion in revenue. The FBR is facilitating firms by dividing their outstanding liabilities into three tranches, allowing staggered payments instead of a single installment.

10. For the current fiscal year, Pakistan and the IMF have set a tax collection target of Rs 14.13 trillion, but collections are lagging behind by Rs 429 billion against the revised target. As of July-February, Rs 8.125 trillion has been collected, including Rs 225 billion from court-mandated payments.

11. IMF Mission Chief to Pakistan, Iva Petrova, suggested such one-off collections may be excluded from next year’s tax base for realistic target setting.

12. Officials confirmed that the remaining super tax collection will be included in the next fiscal year’s advance income tax calculations, effectively keeping the super tax rate above 10% when combined with dividend and other taxes.

IV. List of further TLQCs about Section 4B/4C 

(a) 3443 of 24.2.26 about Super Tax u/s 4C: Irregularities in Enforcement - PTBA letter 

(b) 3439 of 19.2.26 about Super Tax u/s 4B/4C: FCCP Super Shock and Urgent Practical Solutions required

(c) 3435 of 10.2.26 about Super tax u/s 4C: Adjust Demand from Refundable - Tribunal 

(d) 3434 of 4.2.26 about Super tax u/s 4B/4C: Demand challenged on non-rectified ground; Recovery stayed by SHC 

(e) 3431 of 1.2.26 about FCCP Short Order: Sections 4B/4C Super Tax almost intra vires Constitution details

(f) 3433 of 2.2.26 about 4B & 4C Recovery measures, its Economic impact and PTBA recommendations

(g) 3432 of 2.2.26 about Section 4C: FCCP Order's Mr Shabbar Zaidi Comments

(h) 3429 of 29.1.26 about PSX Fallen as KC predicted & may fall more, as 4B & 4C FCCP order 

(i) Over 55 other commentaries on various aspects of Super Tax

V. Further Details & Services

Should you require any clarification or explanations in respect of the above or otherwise, or require Income Tax, Federal & Provincial Sales Tax or Withholding Tax Statement, Advisory, Return Filing or Review services, please feel free to email Mr Amsal at amsal@kasbati.co with CC to info.kasbati@professional-excellence.com, asif.s.kasbati@professional-excellence.com.

Best regards for Here & Hereafter
Asif S Kasbati (FCA, FCMA & LLB)

Managing Partner 

Kasbati & Co (1400+ Tax, Levies, Companies, Economy, Inflation, HR, Banking, Finance, etc

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