I. Background: We refer to the relevant TLQC 3587 of 29.6.26 about Budget 2026-27: Finance Act Gazette plus 1,500 pages & KC Recommendations in trail, blue, italic and double Line (2) We refer to other relevant TLQC in Para IV.

II. Updated Commentary

Further to KQU 3969 of 3.7.26, being an important matter, we would inform you about Representation regarding retrospective application of enhanced surcharge u/s 182A of the ITO 2001 of 2.7.26 - PTBA (Attachment 3594.1).

2. The PTBA Representation is against Retrospective application of increase in penalty / surchage to be via ATL to Rs 25,000 (from Rs 1,000) for Tax Year 2025 and earlier years.

3. In view of the foregoing, it is requested by PTBA that the FBR may kindly direct PRAL to remove the system validation requiring payment of the enhanced surcharge u/s 182A of the Income Tax Ordinance, in cases where taxpayers are filing returns of total income for preceding tax years (TY 2025 or earlier years). 

4. Alternatively, the implementation of the enhanced penalty / surcharge may be deferred at least until the return of total income for Tax Year 2026 is made available and finalized on the IRIS portal, so that the amended provisions are applied prospectively in accordance with the law.

III. Kasbati & Co Views & Recommendation

We agree tothe above and recommend that the Taxpayers and Advisors should not file returns until resolution of the matters (unless urgently as property purchase, etc).

IV. List of other relevant TLQCs from the relevant

(a) 3593 of 30.6.26 about Budget 2026-27: AFF's Tax Memorandum on major changes in Finance Bill

(b) 3587 of 29.6.26 about Budget 2026-27: Finance Act Gazette plus 1,500 pages & KC Recommendations

(c) 3583 of 27.6.26 about Budget 2026-27: President assented Finance Bill to become Act

(d) 3582 of 27.6.26 about Budget 2026-27: Comments on Amended Finance Bill - Tola

(e) 3581 of 24.6.26 about Budget 2026-27: Amended Finance Bill's Unauthentic version

(f) 3580 of 24.6.26 about Federal Budget 2026–27 authentic information about National Assembly passed the Finance Bill

(g) 3578 of 24.6.26 about Surprising 15.2+ Trillion Loans past payments NA discussion; though 2026-27 Revenue will be 20.6 Trillion

(h) 3562 of 14.6.26 about Budget 2026-27: Yousuf Adil highlights & Comments

(i) 3561 of 14.6.26 about Budget 2026-27: KPMG Budget Brief 2026

(j) 3560 of 13.6.26 about Budget 2026-27: AFF's Tax Memorandum on Finance Bill

(k) 3559 of 13.6.26 about Budget 2026-27: Tola Proposed Tax Amendments - Succinctly Recount

(l) 3555 of 13.6.26 about Budget 2026-27: FB, Notes, Salient Features & KC Views 

(m) 3564 of 14.6.26 about Budget 2026-27: Anomaly Committee – Technical

(n) 3563 of 14.6.26 about Budget 2026-27: Anomaly Committee - Business

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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Head of Tax & Professional Excellence Services (Symbols of High Quality Practical Tax, Levies & Corporate Training for Beginners to High Levels' Professionals) 

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