FBR Scraps Super Tax for Exporters Earning Above Rs. 500 Million

The Federal Board of Revenue (FBR) has eliminated the super tax for exporters earning more than Rs. 500 million, provided that more than 80% of their total turnover consists of export proceeds from the relevant tax year. This change, announced via Income Tax Explanatory Circular No. 2 of 2026, adds clause 104B to Part IV of the Second Schedule of the Income Tax Ordinance.

The super tax has also been abolished for taxpayers with income up to Rs. 500 million, barring those covered by a specific table. For those with income exceeding Rs. 500 million who do not meet the exporter exemption criteria, the super tax rate has been lowered from 10% to 8%.

The FBR has also modified the tax audit process, granting the Commissioner the authority, with Chief Commissioner approval and after providing the taxpayer a reasonable chance to speak, to order a re-audit of accounts, revaluation of inventory, or the determination of actuarial values by professionals from a nominated panel. This special review may be requested based on factors such as the complexity and volume of transactions, doubts about correctness, transaction number, or the specialized nature of the taxpayer's business.

Taxpayers can object to the selection of an accountant or cost accountant for the additional review.

Furthermore, the FBR has raised the surcharge for persons not on the Active Taxpayers List. However, individuals can circumvent surcharge conditions by submitting a commitment to the Commissioner not to acquire any property within six months of submitting the commitment.