ISLAMABAD: The Federal Board of Revenue (FBR) has formally granted income tax exemption to judges of the superior judiciary for the tax year 2025–26.
The announcement was made through an update to the Income Tax Ordinance, 2001, after incorporating amendments introduced in the Finance Act, 2025.
According to the revised ordinance, several benefits, allowances, and perks available to judges of the Supreme Court of Pakistan and High Courts will not be subject to income tax.
Among the items covered under this exemption are the use of an official car maintained at government expense, the superior judicial allowance, and transfer allowance payable to judges of High Courts.
In addition, further facilities have been brought under the umbrella of exemption both during service and after retirement.
These include the services of a driver and an orderly, up to 1,000 free local telephone calls per month, 1,000 units of electricity, 25 hm³ of gas, a free water supply, and 200 liters of petrol each month.
The FBR also clarified that in the unfortunate event of a judge’s death during service, the same benefits and perquisites will continue to be available to the widow, with full tax exemption.
This move is seen as a recognition of the unique status of the superior judiciary, ensuring that judges and their families receive adequate support during and after their years of service.
