The Federal Board of Revenue (FBR) has informed the International Monetary Fund (IMF) of its intent to recover over Rs100 billion in late payment surcharges from companies that delayed their super tax payments through litigation. This move creates a significant challenge for the corporate sector as the government is simultaneously seeking IMF approval to abolish the super tax to ease the burden on high earners while penalizing those who contested the tax in court. The surcharge is a direct consequence of the 22% Karachi Interbank Offered Rate (Kibor), and under Section 205 of the Income Tax Ordinance, firms could face annual surcharges as high as 25% of their total tax liability. This specifically impacts the banking, cement, and energy sectors, which were the primary challengers of the 2015 and 2022 super tax levies.
FBR to recover Rs100b super tax surcharge!
In a double jeopardy for businesses hit by the super tax court judgment, Pakistan has informed the IMF that it will recover over Rs100 billion in late payment surcharge from firms that went to the courts and did not make timely…
— Shahbaz Rana (@81ShahbazRana) March 15, 2026
The FBR is leveraging these recoveries to bridge a massive gap in its annual targets, as it is currently struggling with a Rs640 billion shortfall against its original Rs14.13 trillion goal. While the Federal Constitutional Court recently upheld the super tax as constitutional, a ruling that has already secured roughly Rs216 billion in revenue, the FBR is allowing companies to pay their outstanding principal amounts in three separate tranches to manage the heavy financial burden.
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Although the government generates over Rs500 billion annually from the super tax, the IMF has expressed caution regarding the sustainability of these figures. Mission Chief Iva Petrova suggested that these one-off payments from court cases should be excluded when setting realistic tax bases for the next fiscal year. Nevertheless, tax authorities maintain that the super tax and its associated recoveries remain a critical component of the national revenue framework during this fiscal crunch.
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