Islamabad: The Federal Board of Revenue (FBR) has intensified efforts to recover super tax following a ruling by the Federal Constitutional Court, issuing recovery notices to large corporate taxpayers as total collections are estimated at PKR 327 billion.
According to tax officials, notices exceeding PKR 200 billion were issued as Large, Medium and Corporate Tax Offices began calculating super tax liabilities of companies falling under their jurisdictions. The levy applies to thousands of taxpayers after the court upheld the constitutional validity of sections 4B and 4C of the Income Tax Ordinance, 2001.
Officials said some demands have already been issued under section 138(1) for tax year 2023, while calculations are ongoing in other cases. Of the total expected recovery, around PKR 90 billion is projected from oil and gas exploration companies, which are already subject to high effective tax rates ranging from 44% to 55%.
The FBR has also started direct engagement with major corporate taxpayers and aims to recover around PKR 100 billion in the initial phase of enforcement. The International Monetary Fund has been informed about the court’s decision and the recovery measures being implemented.
Recovery notices warn that failure to clear dues may lead to coercive actions, including attachment and sale of assets, appointment of receivers, and arrest and detention under the Income Tax Ordinance. However, taxpayers may seek relief if the demand is under appeal, subject to rectification, or already paid or adjusted.
Earlier, the Federal Constitutional Court dismissed petitions against the super tax, ruling that the levy was lawfully enacted and applicable to the relevant tax years.
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