FBR eyes Rs150-200bn super tax collection in current quarter

• Collection intended to help bridge ongoing revenue shortfall.
• FBR awaits written verdict from Federal Constitutional Court.
• Super Tax ranges from 1% to 10%, based on companies' profits.
  

ISLAMABAD: Following the Federal Constitutional Court's ruling upholding the Super Tax, the Federal Board of Revenue (FBR) is preparing to collect an estimated Rs150–200 billion in the current quarter (January–March) to help bridge the revenue shortfall.

FBR officials are awaiting the official written verdict from the apex court, expected to be received today (Wednesday). With just two working days remaining, the tax authorities aim to mobilize Rs50–60bn to achieve the January 2026 tax target of Rs1,031bn, The News reported.

"We have informed the IMF of the collection of Rs200bn through Super Tax in the aftermath of the decision from the apex court. Although, the pending liability has been worked out at Rs300bn, for all practical purposes, the expected recovery will be hovering around Rs150 to Rs200bn," top official sources confirmed to The News.

"The FBR plans to secure this amount within the ongoing quarter of the current fiscal year to minimise revenue shortfall."

Under the existing structure, Super Tax is imposed at rates ranging from 1% to 10%, depending on annual profits. Companies earning between Rs150 million and Rs200m annually are subject to a 1% Super Tax, while profits of up to Rs250m attract a 1.5% rate.

Profits up to Rs300m are taxed at 2.5%, up to Rs350m at 3.5 %, up to Rs400m at 5.5%, up to Rs500m at 7.5%, and profits above that threshold face a Super Tax of up to 10%. The tax applies mainly to large companies, banks and other highly profitable sectors.

In the first six months (July-Dec) period, the FBR has collected Rs6161bn, facing a revenue shortfall of Rs329bn in achieving the target agreed with the IMF.

For the end of March 2026, the FBR and the IMF have agreed on a collection of Rs9,917bn; the FBR requires a collection of Rs3,756bn in the January to March period to achieve the fixed target.

The Ministry of Finance has issued budget strategy guidelines to the FBR, directing that any revenue shortfall be addressed through improved tax collection rather than new taxation measures, with no additional taxes to be imposed.