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

Notably, the Federal Board of Revenue has abolished super tax for exporters with income exceeding Rs.

Key points

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• The Federal Board of Revenue has abolished super tax for exporters with income exceeding Rs.
• The FBR has further rose the surcharge payable by persons who are not included on the Active Taxpayers List.
• The FBR confirmed the change through Income Tax Explanatory Circular No.

Notably, the Federal Board of Revenue has abolished super tax for exporters with income exceeding Rs. 500 million if more than 80 percent of their total turnover is represented by export proceeds realized during the relevant tax year.

Notably, the FBR confirmed the change through Income Tax Explanatory Circular No. 2 of 2026, issued on Tuesday. The amendment introduces clause 104B in Part IV of the Second Schedule of the Income Tax Ordinance.

Under the revised provisions, super tax has additionally been abolished for persons with income of up to Rs. 500 million, except for those specifically covered by the relevant table. For taxpayers with income above Rs. 500 million who do not qualify for the exporter exemption, the super tax rate has been reduced from 10 percent to 8 percent.

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In practice, the FBR has additionally introduced changes to the tax audit process. Under the new provisions, the Commissioner may, with the prior approval of the Chief Commissioner and after giving the taxpayer a reasonable opportunity to be heard, order a re audit of accounts, revaluation of inventory or determination of actuarial values by professionals selected from a Board nominated panel.

In practice, the authority remarked the decision to seek such specialized review may consider the nature and complexity of a taxpayer's accounts, the volume of transactions, doubts regarding their correctness, the number of transactions or the specialized nature of the taxpayer's business.

Meanwhile, the revised provisions additionally allow a registered person to object to the nomination of a particular accountant or cost accountant for the further review.

Notably, the FBR has further rose the surcharge payable by persons who are not included on the Active Taxpayers List.

Nevertheless, an individual can avoid the surcharge conditions by submitting an undertaking to the Commissioner that they will not purchase, acquire or otherwise obtain ownership or beneficial interest in any property for six months from the date of submitting the undertaking. Stay Connected with ProPakistani.

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Taken together, the developments around FBR Scraps Super Tax for Exporters Earning Above Rs. 500 Million point to a situation that is still moving, and the coming days should bring more clarity.